2026.05.2809:58:28UTC+00Croatia GDP Growth at Softest Pace Since 2020

Croatia’s economy grew by 2.2% year-on-year in the first quarter of 2026, slowing from an upwardly revised 3.9% in the previous quarter and marking the weakest expansion since the contraction recorded in the fourth quarter of 2020. Government consumption decelerated further (0.7% vs 2.8% in Q4 2025), while household spending remained stable at 2.6%. Net external demand also dragged on overall activity, as exports (-1.6% vs 1.5%) declined more sharply than imports (-0.3% vs 0.3%). Gross fixed capital formation moderated significantly, easing to 2.5% from 7.0%.

On the production side, growth lost momentum in manufacturing (1.1% vs 6.4%), construction (2.8% vs 7.2%), wholesale and retail trade, transportation, storage, accommodation and food services (1.8% vs 2.1%), as well as in financial and insurance activities (1.2% vs 2.9%). By contrast, activity strengthened in agriculture, forestry and fishing (4.8% vs 1.7%) and in public administration (3.0% vs 1.0%). On a seasonally adjusted quarter-on-quarter basis, GDP was flat, following a 1.2% increase in the previous period.