GDP fell by 1.9 percent

The Croatian gross domestic product (GDP) in the third quarter of this year fell by 1.9 percent in real terms compared to the same period last year, the Croatian Bureau of Statistics announced today.

This is the same decline as the first estimates of the Bureau published at the end of November. Thus, the decline in GDP on an annual basis continues for the fourth consecutive quarter.

In the second quarter of this year, the real decline in GDP was 2.2 percent, in the first quarter 1.3 percent, and in the last quarter of 2011, GDP decreased by 0.4 percent, while in the third quarter of last year, real GDP grew by 0.8 percent.

The data published today by the Croatian Bureau of Statistics show that all components of GDP recorded a decline in the third quarter of this year, with household consumption expenditures falling by 3.5 percent and gross investments in fixed capital by 4.3 percent, while the decline in exports was smaller than the decline in imports.

The decline in household consumption expenditures, which is the largest category in GDP, of 3.5 percent is slightly higher than in the second quarter when these expenditures decreased by 3.4 percent compared to the same period the previous year. This is also the largest decline in personal consumption since the first quarter of 2010, when it was 4 percent.

Expenditures for consumption by non-profit institutions serving households (NPUSK) fell in the third quarter of this year compared to the same period last year by 0.6 percent, which is a smaller decline than in the second quarter when it was 1 percent.

Government consumption expenditures in the third quarter recorded a decline of 0.4 percent, which is a larger decline than in the second quarter when these expenditures decreased by 0.2 percent.

The decline in gross investments in fixed capital was also slightly smaller, amounting to 4.3 percent in the third quarter, while in the second quarter this decline was 5.9 percent.

In the third quarter, the decline in imports of goods and services was greater than the decrease in exports – exports of goods and services fell by 0.1 percent compared to the same quarter last year, while imports fell by 3.3 percent. The decline in exports was significantly slowed compared to the second quarter when it was 1.8 percent, while the decrease in imports in the second quarter was also 3.3 percent.

According to DZS data, gross value added (GVA) in the third quarter of this year compared to the same period last year fell in real terms by 2.1 percent (while in the second quarter this decline on an annual basis was 2.5 percent).

A more pronounced decline was recorded in several important sectors – construction by 11.8 percent, agriculture, forestry, and fishing by 5.5 percent, manufacturing, mining, and extraction, and other industries by 3.9 percent (with the decline in manufacturing amounting to 2.9 percent).

Gross value added in the third quarter compared to the same period last year also decreased in financial and insurance activities by 1.9 percent, real estate activities by 1.4 percent, wholesale and retail trade, transportation and storage, accommodation, food preparation and serving by 1.1 percent, and information and communication by 1 percent.

Only two sectors recorded real GVA growth in the third quarter of this year compared to the same period last year – public administration and defense, education, health care, and social welfare by 0.7 percent, and professional, scientific, technical, administrative, and support service activities by 0.5 percent, while other service activities remained at the level of the third quarter of last year.