Brief Financial Market Comments for September 2019

BDP in the 2nd quarter of 2019

Croatian GDP grew 2.5% in the second quarter in 2019, after a strong growth of 3.8% in the first quarter of this year. Growth is above euro area (EA) averages, as well as averages across the EU28. This is related to the recovery in the construction sector, which has given a positive effect on the economic growth in the country, as well as exports of goods and services, which have strengthened by a modest 1.3% in the second quarter (after 4.6% in the 1st quarter), while imports of goods and services increased by 6.7% (after 7.7% in the 1st quarter).

Macroeconomic situation between the HR and the EU

Macro data	HR	Eurozone
GDP growth (2nd quarter 2019)	2,5 %	1,2 %
Inflation Rate (August 2019)	0,8 %	1,0 %
Unemployment rate (July 2019)	7,1 %	7,5 %
Public Debt (% of GDP, 1st quarter 2019)	74,5 %	85,9 %
State Budget (2018)	0,2 %	-1,1 %
Industrial production (July 2019)	3,0 %	-2,0 %
Retail Turnover (July 2019)	3,5 %	2,2 %