The European Commission has revised down its growth forecast for Croatia and now expects the Croatian economy to contract 1% this year, while 2014 should see a marginal growth of 0.2%.
The Commission on Friday published its spring forecast for the 2013-2014 period with projections of growth, employment, inflation and budget deficit in EU member states, Croatia, membership candidates and major global economies such as the United States, Japan, China and Russia.
In February the Commission projected a 0.4% contraction of the Croatian economy in 2013 and growth of 1.4% in 2014. Unemployment was projected at 15.8% this year and 14.9% in 2014.
According to the latest figures, the unemployment rate in Croatia might reach 19.1% in 2013 and 20.1% in 2014. The deficit is expected at 4.7% of GDP, while public debt is forecast at 57.9% of GDP.