Croatia’s economy grows for 20th consecutive quarter as GDP rises 3.6%

Zadar

ZAGREB, 27 February 2026 – Croatia has recorded its twentieth consecutive quarter of economic growth, with gross domestic product (GDP) rising by 3.6% in real terms in the fourth quarter of 2025 compared with the same period in 2024.

According to the first estimate released by the Croatian Bureau of Statistics, quarterly gross value added (GVA) increased by 2.8% in real terms year-on-year in the final quarter of 2025.

The latest figures confirm that Croatia’s economy has maintained uninterrupted annual growth for five years, underscoring its resilience amid global economic uncertainties.

Household and Government Spending Drive Growth

Household consumption rose by 2.6% in real terms in the fourth quarter of 2025 compared with the same quarter a year earlier.

The increase was primarily driven by stronger retail trade turnover, reflecting sustained consumer confidence and spending power.

Government consumption also contributed significantly to overall growth, rising by 4.7% year-on-year in the fourth quarter.

Modest Trade Growth

Exports of goods and services recorded a real increase of 1.5% in the fourth quarter of 2025 compared with the same period in 2024. Imports grew more modestly, up by 0.3% in real terms.

The trade figures indicate steady external demand, while the relatively lower growth in imports suggests a balanced contribution of net exports to overall GDP performance.

Annual Growth of 3.2% in 2025

Alongside the fourth quarter data, preliminary estimates for the full year 2025 show that Croatia’s GDP grew by 3.2% in real terms compared with 2024.

Annual gross value added for 2025 increased by 2.8% in real terms year-on-year, according to the first estimate.

These results position Croatia among the steadily expanding economies within the European landscape, maintaining momentum through domestic consumption and public sector activity.