Croatian Economic Recovery Expectations Becoming More Optimistic

By 1 December 2021

December the 1st, 2021 - Croatian economic recovery expectations are looking a little brighter as we begin to slowly but surely emerge from the global coronavirus pandemic.

As Poslovni Dnevnik/Jadranka Dozan writes, if business leaders were to be asked, Croatian economic recovery expectations in the past month have been somewhat more optimistic than the month before. In contrast, among consumers themselves, the perception seems to be more susceptible to the development of the epidemiological picture of the time, meaning that in the last study their expectations actually decreased.

These are, in short, the main findings for the Republic of Croatia and the domestic economy from the latest report of the European Commission (EC) on the economic climate in the member states of the European Union (EU).

While the economic climate index (ESI) at the EU level last month slightly (by one percentage point) deteriorated when compared to the month of October, in Croatia it rose by slightly less than two percentage points, up to 111.3 points. The most pronounced growth of expectations among the domestic business community was shown by the construction sector (with an index growth of as high as 6.3 points).

Although a solid increase in optimism was recorded among the leaders of industrial companies, and somewhat milder in the trade and service sector, it was the wave of optimism among builders that outweighed the somewhat more pessimistic expectations of consumers.

Namely, among people themselves, reduced Croatian economic expectations were reflected in a drop in the index by 2.7 points. From the business sector for the next period, signals are coming in about the intentions of increased employment, although due to the ongoing pandemic, procurement problems are still likely to remain an issue.

At the level of the entire EU, the decline in consumer sentiment prevailed in the overall Croatian economic expectations, although they also improved slightly in the month of November among the European Union's business people, and employment expectations were also positively intoned.

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