By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boris Vujčić said on Sunday that current conditions in Croatia lie between the baseline and adverse scenarios outlined by the Croatian National Bank, adding that the severe scenario would materialize if the shock persists for several months.

In an interview with Croatian TV HRT, Vujčić, who heads the Croatian National Bank, said, “It all depends on what happens on the global energy market.”

“If this situation continues for months, then we will be approaching that very bad scenario,” he said.

However, if a resolution to the conflict was reached “relatively quickly”, he said, then the situation would return to the baseline, in which Croatian inflation was expected to average 4.6% in 2026.

“The longer the energy crisis lasts, the more it will be reflected in the increase in prices, and on the other hand, in the decline in GDP,” he said.

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