CBS: Croatian Industrial Production Slowed Down in July 2022

By 3 September 2022

September the 3rd, 2022 - Croatian industrial production slowed down during the scorching summer month of July this year according to the Central Bureau of Statistics (CBS). Inflationary pressures, the Russia-Ukraine war and economic downturn all pose continuing threats.

As Poslovni Dnevnik/Josipa Ban writes, back during July this year, Croatian industrial production increased by 2.9 percent on an annual basis, while it fell by 1.9 percent on a monthly basis, data from the CBS shows. Growth experienced back during July was slower than it was one month earlier, when Croatian industrial production increased by 3.8 percent on an annual basis.

When referring to this CBS report, analysts from Raiffeisenbank Austria (RBA) have pointed out that the growth of industrial production, along with the growth of retail trade, is a continuation of the favourable trends for the third quarter. This, they say, indicates solid domestic economic growth in the period from July to September.

As for the sectors involved, production growth in July was recorded in four of them. The most, standing at 14.1 percent, lies in the production of capital goods. Following that with 10.5 percent is the production of energy, while the production of durable consumer goods increased by 4.3 percent, and non-durable consumer goods increased by 1.2 percent. Only the production of intermediate products fell - by 3.1 percent in total.

However, RBA analysts have also made sure to warn the public of negative risks alongside this seemingly completely positive news.

"The adverse impact of the current geopolitical conflicts (referencing the Russia-Ukraine war and the spiralling inflation we're all experiencing) has a negative impact on the recovery of foreign demand due to the dependence of some of the Republic of Croatia's most important trade partners on Russia. Likewise, strong inflationary pressures and problems in supply chains will act in a negative direction and reduce potential stronger achievements,'' they concluded.

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