Croatia: 2Q GDP contracted by 6.3% y/y

According to the flash estimate, GDP shrank by 6.3% y/y in 2Q, hence slightly exceeding our expectation, which was in the 5.5-6% range, but overall showing some improvement over 1Q, when GDP recorded a 6.7% y/y decline. Detailed figures will be published in September, at which time more details about the structure should be known. Nevertheless, short-term indicators show that domestic demand (namely private consumption and investment spending) continued to put in a weak performance. On the