ZAGREB, 28 Aug (Hina) - Driven mainly by growth in personal consumption and investment, the Croatian economy expanded by 3.4% year-on-year in the second quarter of 2025, faster than in the previous quarter.

The Croatian Bureau of Statistics (DZS) released its first estimate on Wednesday, showing that Gross Domestic Product (GDP) grew by 3.4% in real terms in the second quarter of 2025 compared with the same period in 2024.

This marks the 18th consecutive quarter of growth, showing faster growth than the previous quarter, when GDP rose by 2.9%.

Faster growth in consumption and investment

According to DZS data, household consumption – the largest component of GDP – increased by 4.0% year-on-year in the second quarter, considerably faster than the 1.7% growth recorded in the first quarter.

Gross fixed capital formation rose by 5.2%, up from 4.5% in the previous quarter.

Government spending grew by 2.4%, following a 5.8% rise in the first quarter.

Imports of goods and services increased by 3.3%, a marked slowdown from 8.8% in the previous quarter. Goods imports rose by 0.9%, while services imports jumped by 16.4%.

Exports of goods and services grew by 1.6% in the second quarter year-on-year, well below the 6% growth recorded in the first quarter. Goods exports rose by 3.7%, while services exports fell by 0.3%.

Growth still outpaces EU average

According to seasonally adjusted data from the DZS, the Croatian economy expanded by 3.2% year on year and by 1.2% quarter on quarter in Q2.

Croatia's growth thus continues to outpace the European Union average.

Eurostat recently reported that the EU economy grew by 0.2% quarter on quarter and by 1.5% year on year in the second quarter, based on seasonally adjusted figures.

The euro area economy rose by 0.1% on the quarter and by 1.4% on the year.