Sunday, 21 November 2021

Average Take-Home Pay €948 in Croatia, 1 in 10 Workers Earns Below €514

ZAGREB, 21 Nov, 2021 - The average net wage earned in Croatia in September amounted to HRK 7,108 (€948), and over the period of one year, the average take-home pay has risen by 361 kuna (€48), however, the latest monthly average pay decreased by 10 kuna (€1.3) on the month, the Večernji List daily reported on Sunday.

According to DZS data, the median net pay in September was HRK 6,017, which means that half of the people employed earned wages below that amount and half earned wages above that amount.

Also, an estimated 136,000 workers, that is 10% of all employees in the legal entities, earned less than 3,854 kuna (€514), reported the daily newspaper.

Rise in wages in the IT and hospitality sectors

Broken down by the sectors, the biggest rise (+9%) in the average monthly salaries over the last year was seen in the IT sector and the tourism and hospitality industry.

In the public sector, salaries in the healthcare sector increased 6.5%. The daily reports that the average monthly wage in Croatian hospitals is HRK 9,600 (€1,280).

In the social welfare sector, the average monthly wage is HRK 6,100, and in primary schools, HRK 7,800, while the average monthly wage for employees in secondary schools is HRK 7,900, and the average salary paid by universities is HRK 11,000.

The average net salary in the state administration is below HRK 8,200.

The average wage in the manufacturing sector has risen by about hundred kuna to HRK 6,572.

Low tax ethics

A survey conducted by researchers Josip Franić and Stanislaw Cichocki show that every one in four employees in Croatia (27%) actually receive  higher amounts of monthly wage than the salary reported to the relevant institutions.

The survey conducted in September 2019 shows that every one in seven employees in the European Union has nothing against the cheating in the reporting a lower tax base so that they can get actually a higher monthly pay off-the-books.

"One in seven fully declared EU workers would have nothing against receiving one part of their wages off-the-books," according to the research.

For instance, in Croatia 17.6% of the respondents said they had nothing against receiving one part of their wages off-the-books, and in the Netherlands, this percentage stood at 25%, whereas Portugal had the lowest number of workers who are willing to opt for wage under-reporting.

(€1 = HRK 7.5)

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Thursday, 21 October 2021

Croatia Reports Consolidated General Government Budget Deficit of HRK 27.85 bn

ZAGREB, 21 Oct 2021 - Croatia ran a consolidated general government deficit of HRK 27.85 billion in 2020, which was 7.4% of GDP, while the public debt to GDP ratio increased to 87.3%, the National Bureau of Statistics (DZS) reported on Thursday. 

By comparison, the general government budget ran a surplus of HRK 1.2 billion or 0.3% of GDP in 2019, of HRK 864 million or 0.2% of GDP in 2018, and of HRK 2.8 billion or 0.8% of GDP in 2017.

Last year's deficit was mainly due to the impact of the COVID-19 pandemic on economic activity and because of state aid to the economy.

The consolidated general government debt reached HRK 330.23 billion in 2020, or 87.3% of GDP, ending the multi-year trend of decline.

By comparison, the consolidated public debt was HRK 293.2 billion or 71.1% of GDP in 2019, HRK 286.6 billion or 73.3% of GDP in 2018, and HRK 285.4 billion or 76.7% of GDP in 2017. 

Deficit growth is driven by the economic fallout of the COVID-19 pandemic

The 2020 deficit was largely influenced by the budget balance deficit, which amounted to HRK 21.98 billion or 5.8% of GDP, increasing by HRK 22 billion from the previous year.

The DZS said that the high deficit was the result of a decline in economic activity caused by the COVID-19 pandemic, which had a considerable impact on the fall in tax revenues and social contributions. On the other hand, the government took long-term measures on the expenditure side of the budget to protect jobs and finance the costs of healthcare.

In 2020, taxes on production and imports totaled HRK 70.7 billion, down by 13% compared with 2019, while current taxes on income and wealth amounted to HRK 24.7 billion, a decrease of 7.4% compared with the previous year. Revenues from net social contributions fell by 4.8% to HRK 45.07 billion.

The 2020 deficit was also generated by the poor financial result of extrabudgetary beneficiaries and public companies as well as by the increase in subsidies and welfare and employment allowances.

Last year, interest expenses totaled HRK 7.4 billion, down by 17.5% compared with 2019, when they amounted to HRK 8.97 billion.

On the other hand, investment increased by 19.3% to HRK 21.3 billion. However, capital transfer expenses reached HRK 942 million, which contributed to the deficit growth.

The primary general government deficit, which shows the difference between revenues and expenditures without interest expenses, was HRK 20.45 billion or 5.4% of GDP, compared with the primary general government surplus of HRK 10.17 billion in 2019.

The government debt to GDP ratio up by 16.2 pp

In 2020, the general government debt increased by HRK 37 billion or 12.6% from 2019, of which HRK 33 billion was generated by net borrowing and the rest by the depreciation of the kuna-euro exchange rate.

The trend of the decreasing Maastricht debt to GDP ratio, which began in 2013, was suddenly reversed by the COVID-19 crisis. In 2020, the general government debt to GDP ratio rose by 16.2 percentage points from 2019 to 87.3%, as a result of the government's increased need for borrowing and the GDP decline caused by the drop in economic activity.

The DZS submits a report on the budget deficit and general government debt to the European Commission twice a year, in April and October. Based on such reports, the Commission decides whether EU member states meet the Maastricht criteria, namely that their general government deficit to GDP ratio is below 3% and that general government consolidated debt is below 60% of GDP.

The Croatian parliament amended the 2021 budget in June, projecting growth of 5.2%, a consolidated general government deficit of 3.8% of GDP (HRK 15.3 billion), and a public debt to GDP ratio of 86.6%.

(€1 = HRK 7.504808)

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Wednesday, 6 October 2021

Croatian Bureau of Statistics: New record Jump in Industrial Producer Prices

ZAGREB, 6 Oct, 2021 - Croatia's industrial producer prices jumped by 12.1% in September 2021 compared with the same month in 2020, their highest rise since January 2011, according to the data released by the National Bureau of Statistics.

This was the seventh month in a row to see an increase in industrial producer prices on an annual level, following the 9.3% rise in August.

The positive streak began in March this year with an annual rise of 3.5% and was followed by increases of 5.8% in April, 7.6% in May, 7.2% in June and 7.9% in July. 

The rise was mainly driven by energy prices. Excluding energy, producer prices in September were 0.5% higher than in August and 3.5% higher than in September last year.

On the foreign market, industrial producer prices in September 2021 increased by 1.0% compared with August 2021 and by 10.1% compared with September 2020. On the domestic market, they rose by 3.2% month on month and by 13.7% year on year.

Broken down by main industrial groupings, in September compared with August, prices of energy on the domestic market increased by 9.4%, prices of capital goods by 0.5%, prices of intermediate goods by 0.4%, prices of durable consumer goods by 0.1%, and prices of non-durable consumer goods by 0.1%.

On an annual level, prices of energy on the domestic market rose by 42.2%, prices of intermediate goods by 6.2%, prices of durable consumer goods by 2.5%, prices of capital goods by 2.5%, and prices of non-durable consumer goods by 1.2%.

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Tuesday, 28 September 2021

Statistical Office Says 40% of Total Population Has Self-Enumerated

ZAGREB, 28 Sept, 2021 - A total of 1.637 million Croatian citizens have self-enumerated during the first phase of the 2021 census of the population, households and dwellings, which is more than 40% of the total population, the national statistical office (DZS) said on Tuesday.

Most of the citizens who have self-enumerated are from the City of Zagreb, 489,138 or 60% of the city's total population, and from Split-Dalmatia County, where 165,678 citizens or 37% of the county's total population have self-enumerated.

Split-Dalmatia County is followed by Zagreb County, with 137,313 self-enumerated citizens (44%), and Primorje-Gorski Kotar County, with 135,878 self-enumerated citizens (48%).

Citizens used the option of online self-enumeration the least in Lika-Senj County (10,400 or 23% of the county population), Virovitica-Podravina County (17,627 or 24% of the county population), and Požega-Slavonia County (17,724 or 27%).

In the second phase of the census, which starts on Tuesday, census-takers will be taking census data on the ground by visiting households and registering citizens, households and dwellings and taking from citizens who have self-enumerated control codes proving that they have successfully self-enumerated, the DZS said.

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Wednesday, 1 September 2021

Croatia’s Industrial Production Up for Eight Straight Months

ZAGREB, 1 Sept, 2021 - Croatia's industrial production rose in July for the eighth month in a row, growing by nearly 4% on an annual level, indicating further recovery of production and the entire economy from the coronavirus crisis.

The Croatian Bureau of Statistics (DZS) reported on Wednesday that industrial production had shrunk by 1.6% in July compared with the previous month, while increasing by 3.9% compared with July 2020. This was slower growth than in June, when production had jumped by 8.3% year on year.

"Growth in the volume of industrial production continued in July, albeit at a slower rate compared with the previous months when stronger annual growth was the result of last year's low base," analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.

Growth was reported for three of five sectors. Energy production rose the most, by 13.1%, followed by production of non-durable consumer goods (+4.2%) and capital goods (+2.8%). Production of durable consumer goods and intermediate goods fell by 4.7% and 4.1% respectively.

After dropping by 3.4% last year, industrial production increased by 8.7% in the first seven months of this year compared with the same period of last year, contributing to the economic growth and recovery.

The data on further growth of industrial production, as well as recent figures on further growth of retail trade indicate continued recovery of the national economy from the coronavirus crisis. Last week, the DZS released data showing that GDP had jumped by a record 16.1% in the second quarter, its first growth after four quarters of decline.

"Although the epidemiological picture will continue to affect the pace of economic recovery, the growth of foreign and domestic demand and the industry confidence index, which continued to grow in July, nearing 2019's levels, confirm our expectations of a solid continuation of growth in the volume of industrial production until the end of the year," RBA said.  

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Friday, 20 August 2021

DZS: Number of People in Employment Up

ZAGREB, 20 Aug, 2021 - In July 2021, there were 1.59 million persons in employment in Croatia, which is 1.5% more than in June 2021 and 2.3% more than in July 2020, while the registered unemployment rate this July slightly went down, the national statistical office (DZS) reported on Friday.

According to the DZS, the number of jobless people in January-July 2021 dropped by 0.2% on the year.

The number of the jobless registered with the Croatian Employment Service at the end of July 2021 was 126,006, down 0.2% on the month and 16.8% on the year, with the registered unemployment rate set at 7.4%.

A total of 1.35 million people were employed in legal entities, which is 1.3% more month on month and an increase of 2% on the year.

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Friday, 20 August 2021

DZS: Average Take-Home Pay in Croatia Mildly Rises to HRK 7,175 in June

ZAGREB, 20 Aug, 2021 - For this June, the average monthly net earnings per person in paid employment in legal entities in Croatia amounted to HRK 7,175, nominally higher by 5.9% and really by 3.8% as compared to the same month last year, according to the latest data provided by the national statistical office (DZS).

As compared to May 2021, both the nominal and the increase was one percent.

The highest average monthly net pay per person in paid employment in legal entities for June 2021 were earned in Manufacture of coke and refined petroleum products (HRK 15,823), while the lowest were earned in Manufacture of wearing apparel (HRK 4,409).

Median net take-home pay for June 2021 amounted to HRK 6,023, and the median gross salary was HRK 7,813.

(€ 1 = HRK 7.482172)

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Thursday, 19 August 2021

Croatian Seaports Handle More Passengers and Cargo in Q2 2021

ZAGREB, 19 August, 2021 - The turnover of passengers at Croatian seaports in the second quarter of 2021 reaches 5.4 million, up 81.8% on the year and 41.9% more than in the same period in 2019, according to the national statistical office (DZS).

The port in Split recorded the highest number of passengers -- 739,970 -- which is 115.3% more than in the same period the year before.

The port in Zadar follows with 474,089 passengers or 63.8% more on the year.

Maritime freight increased by by 10.2% with Croatian ports handling 6.2 million tonnes of seaborne goods in the said period.

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Friday, 13 August 2021

Number of Tourists in Commercial Accommodation in June Up 72 Percent

ZAGREB, 13 Aug 2021 - Croatia's commercial accommodation facilities in June reported 72% more tourists and 82% more overnights than in the same month of 2020, however the numbers are still not at the level of 2019, notably when it comes to foreign tourists, according to data provided by the national statistical office (DZS).

Commercial accommodation facilities reported a total of 1.37 million tourists in June 2021, and they generated 6.5 million overnights.

In June 2021, there were 1.1 million foreign guests in commercial accommodation facilities, or 50.6% more than in June 2020, and they generated 5.6 million overnight stays, or 81% more on the year.

Domestic guests generated 275,200 arrivals and 854,300 overnight stays, the numbers increasing by 76.2% and 87% respectively y-o-y.

In the first six months of 2021, there were 771,700 domestic guests in commercial accommodation facilities or 77.3% more than in H1 2020. They generated nearly two million overnights, up 82.2% on the year.

In the same period, foreign tourists made 1.5 million arrivals, up 50%, and 7.5 million overnights, up 82.3%.

Most foreign tourists were from Germany, Slovenia, Austria, Poland and the Czech Republic.

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Friday, 30 July 2021

Croatia's Industrial Stockpiles Down Month on Month and Year on Year

ZAGREB, 30 July 2021 - Croatia's stockpiles of finished industrial goods in June 2021 were 6.9% lower than in the previous month and 1.6% lower than in June 2020, according to data from the National Bureau of Statistics (DZS).

Broken down by main industrial groupings, compared with May 2021, energy stockpiles fell the most, by 17.8%. Stockpiles of capital goods decreased by 12.7%, non-durable consumer goods by 6.2%, intermediate goods by 4.7% and durable consumer goods by 0.1%.

Compared with June 2020, energy stockpiles increased by 10.1% and stockpiles of non-durable consumer goods by 8.3%, while stockpiles of capital goods fell by 19.9%, intermediate goods by 12.3% and durable consumer goods by 12.2%.

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