Saturday, 3 September 2022

CBS: Croatian Industrial Production Slowed Down in July 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.

For more, make sure to check out our dedicated business section.

Friday, 29 April 2022

Croatia's Industrial Production Down For the First Time in 15 Months

ZAGREB, 29 April (2022) - Croatia's industrial production fell in March 2022 for the first time in 15 months, indicating a slowing of the economic recovery.

Industrial production decreased by 2.6% from February 2022 and by 1.9% from March 2021, the Croatian Bureau of Statistics (DZS) said on Friday.

Annual decreases were observed in four of five sectors, with production of capital goods decreasing the most, by 6.7%.

Production of energy fell by 4.0%, of non-durable consumer goods by 3.3% and of durable consumer goods by 2.3%, while production of intermediate goods increased by 2.3%.

In the first quarter of this year, industrial production rose by 1.7% year on year. 

Production and economic growth might slow down this year because of the economic impact of Russia's military invasion of Ukraine.

"According to our expectations, the modest positive growth rate for this year, considering geopolitical developments, is exposed to negative risks. The recovery of external demand will be more modest given the potentially unfavourable impact of current geopolitical conflicts and the dependence of some of Croatia's most important trading partners on Russia. On the other hand, the low base effect will have a positive impact," analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.

For more, check out our business section.