EU slowdown may reach Croatia and Slovenia via tourism

Significance

Croatia also recorded strong growth in the first half, its economy benefiting like Slovenia’s from a recovery in tourism. Tourism both exposed Croatia and Slovenia to deep recession in 2020 and helped them recover.

Impacts

• Croatia’s adoption of the euro in January 2023 will resolve the problem of currency fluctuations during the tourist season.
• A shallow and brief recession this winter would keep bankruptcies and non-performing loans to a minimum, allowing a rebound in 2024.
• The left-green coalition government in Slovenia will probably try to mitigate the slowdown’s impact on workers and households.