Uncertainty clouds Croatian outlook
First economic downturn in decade; Prime minister’s shock resignation
Ivor Sanader: deliberately shocking Croatia and Europe
Government officials in Zagreb, the Croatian capital, are no doubt praying for a scorching August after the latest economic data from the Balkan state showed that the chill winds of recession were blowing strongly at the start of the year. Favourable weather could make all the difference between Croatia entering a shallow or a deep downturn, given that tourism accounts for about 20% of GDP and roughly 45% of foreign-currency earnings.
According to Crostat, the Croatian statistics agency, in the first quarter of 2009 GDP fell by 6.7%