128 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY According to the World Bank forecasts2, the COVID-19 crisis is expected to cause a recession in Croatia in 2020, mainly due to the country’s heavy reliance on tourism. Successful fiscal consolidation of recent years might be reversed, and so Croatia is set for a deep recession, with a possible reduction of its GDP by 6.2% (Fig. 1). The World Bank states that “prolonged disruptions in global supply chains and a falling demand, especially when it comes to travelling and tourism being the single most important sector in the Croatian economy, could all lead to an even stronger economic recession”3, as well as repercussions for both export and import of goods and services, particularly tourism and the hospitality services (Fig. 2). Figure 1: Croatia / Real GDP growth and contributions to real GDP growth4. 2 Source: World Bank Group. Fighting COVID-19, Europe and Central Asia Economic Update, Office of the Chief Economist, Spring 2020, https://openknowledge.worldbank.org/bitstream/handle/10986/33476/ 9781464815645.pdf. 3 Source: World Bank Group. Fighting COVID-19, Europe and Central Asia Economic Update, Office of the Chief Economist, Spring 2020, https://openknowledge.worldbank.org/bitstream/handle/1 0986/33476/9781464815645.pdf. 4 Source: World Bank Group. Fighting COVID-19, Europe and Central Asia Economic Update, Office of the Chief Economist, Spring 2020, https://openknowledge.worldbank.org/bitstream/handle/1 0986/33476/9781464815645.pdf.
RkJQdWJsaXNoZXIy MTE4NzM5Nw==