The Croatian economy is slowly but surely moving in the right direction, it may be a case of baby steps but the baby steps are at least going forward. And fresh data from the Croatian Bureau of Statistics (CBS) again indicate that economic recovery and slight growth is now constant over a longer time period. Estimates from financial institutions show that the gross domestic product (GDP) grew by just over 2 percent in the second quarter of this year, which would mean a seventh quarter in a row with positive growth.
Along with the positive GDP news there also comes news that the average Croatian salary is on the rise. In June this year the average net salary amounted to 5,686 Kuna, or around 760 Euros, which is a 2.4 percent increase over the same month from last year. Over the whole of 2015 the average net salary was 5,500 Euros, or 735 Euros, which placed Croatia in 21st place of the 28 European Union members, with Luxembourg having the highest average salary of 3,149 Euros a month.
Macroeconomists indicate that the economic growth in Croatia is mainly thanks to strengthening of private consumption, the largest component of GDP. This is indicated by the rise of turnover in the retail trade for the 22nd consecutive month, which has not been recorded since the CBS started taking information.
“Personal consumption is encouraged by the good results of the tourist season and seasonal improvement in the labour market, while the real disposable income has a positive effect and the continued decline in average prices of consumer goods,” commented one of the macroeconomists.
The excellent results recorded in the tourism season so far this year have certainly helped the Croatian economy. In the first six months of this year the number of overnight stays increased by 4.4 percent, compared to last year, and amounted to 16.5 million. It is predicted that revenue from tourism this year could amount to 8 billion Euros.
Illustration Croatian Bureau of Statistics