ZAGREB – Croatia’s smaller GDP decline

.Croatia’s central bank governor Boris Vujcic told a business panel that the country’s GDP could fall by around 8% this year – compared to an estimated 9.7% percent contraction the bank forecast in July. Speaking at a business panel, Vujcic said Croatia’s economy is expected to rebound by 6% next year, but warned it would not reach the pre-corona level before 2023.

He said the bank will maintain the current exchange rate of 7.5345 kuna to the euro and it will “most probably be the rate when we join the eurozone”.

The EU is expected to allow Croatia and Bulgaria to join the ERM-2 exchange rate mechanism, the ‘waiting room’ for the euro area next year, which means they could adopt the euro in 2023 at the earliest.

(Zoran Radosavljević | EURACTIV.com)

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