The CEIZ index of the Economic Institute in Zagreb, which provides a monthly assessment of the economy on the basis of statistical data reached in January and February its highest levels over the past six months.

“Although the index is in continuous decline on annual level ever since January 2017, in the first two months of this year this decline slowed down significantly – to -0.4 and -0.6 points annually. This February, all components of the CEIZ index rose on annual level, especially the VAT revenue which grew significantly and was the single biggest contributor to growth of the index” says the statement by the EIZ.

Compared to the last quarter of 2017, the CEIZ rose by 0.5 points cumulatively, and the average value of the index in January and February was 0.6 points higher than the average over the Q4 2017. The EIZ analysts believe this indicates an increase in economic activity compared to the end of last year.

“The CEIZ trajectory gives rise to expectation that the annual growth rate of the real GDP in the first quarter could reach 2.7%, which would be a significant increase over the 2% reached in the last quarter of last year. Seasonally adjusted data indicate that the GDP grew by one point in the first quarter as compared to the Q4 2017.”