New optimistic forecasts are arriving from the European Commission, announcing growth in purchasing power and wages in Croatia, along with a slowdown in price growth.

The European Commission forecasts GDP growth for Croatia of 3.2% this year and 2.9% next year, writes net.hr. Only Malta, Denmark, Ireland, and Poland will have higher GDP growth than Croatia.

A slowdown in price growth is also expected, so inflation could fall to 2% by 2026. Compared with other EU member states, higher inflation will be seen in Romania, Hungary, Slovakia, Estonia, and Bulgaria.

Finance Minister Marko Primorac points out that the Commission’s estimates confirm the Government’s goals: “We want to maintain a higher rate of economic growth than the EU and Eurozone average. Inflation is also slowing, which is good. We are satisfied with the trend and hope that the reduction in inflationary pressures will continue.”

As for wages, analyst Stojić states: “Wages should grow by around 8.5% this year, which is among the highest growth rates in the EU. Last year, Croatia had a record increase in median income of 22%.” He adds that inflation should be around 2.5% by 2026, but warns of risks: “Tariff wars and changes in global value chains can increase import prices. Croatia imports a lot, and wage growth is strong. If productivity does not increase, such wage growth could trigger new inflation.”