IMF cuts Croatia’s growth forecast for 2026, 2027

Croatia’s economy is projected to grow by 2.2% this year and accelerate only marginally in 2027, according to downgraded forecasts by the International Monetary Fund (IMF).

In April, the IMF had forecast that Croatia’s gross domestic product (GDP) would grow by 2.6% in 2026, CE Report quotes HINA.

According to the IMF’s latest projections, economic activity is expected to increase by 2.3% in 2027. In the spring, the Fund had also forecast growth of 2.6% for that year.

Last year, Croatia’s economy grew by 3.4%, according to the IMF’s latest estimates. Its April report had put economic growth at 3.2%.

Inflation in Croatia is expected to reach 4.5% this year, with the IMF raising its spring forecast by 0.1 percentage points. Inflation stood at 4.4% in 2025.

In 2027, price growth is expected to slow to 3.3%. In the spring, the IMF had forecast a more pronounced slowdown to 2.7%.

Croatia is expected to record a current account deficit of 4.4% of GDP this year, according to the IMF’s latest calculations. Its April report had projected a deficit of 3.8% of GDP.

In 2025, the current account deficit stood at 3.5% of GDP, according to the IMF report.

For 2027, the IMF projects Croatia’s current account deficit at 3.3% of GDP, unchanged from its April forecast.

Croatia’s unemployment rate is expected to stand at 4.5% this year, according to the IMF, which lowered its April estimate by 0.1 percentage points.

In 2027, the IMF expects unemployment in Croatia to reach 4.6%, in line with its April projection.

Croatia’s unemployment rate stood at 4.5% last year, confirming the IMF’s spring estimate.

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