Long-troubled Croatia has finally begun to see a spat of good economic news. The economy was mired in recession between 2008-2014, but the nation is now emerging from that downturn with unexpected vigor. The government estimates that real GDP growth will reach 3.2% in 2017. A key reason is momentum in the tourism sector; hospitality businesses have benefitted from turbulence elsewhere in the Mediterranean. In tandem with better activity, the Zagreb Stock Exchange delivered a US dollar-based return of 20% in 2016. The bourse ranks among the top-performing frontier markets worldwide for the calendar year. A heavy contributor to that surge was the dominant telecom company, which acts as a proxy for an increasingly-buoyant economy. We expect investors will continue to support local stock-price gains over the year ahead, given in part the focus of the newly-formed government on fiscal reform. Yet we acknowledge that political risk is always high in Croatia. ■
Learn more at Total Croatia News.
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Image shows Dubrovnik skyline. Credit: Zatletic at Can Stock Photo Inc.