In July, retail trade in Croatia increased by 0.4 percent year-on-year, marking the third consecutive month of growth, albeit at a slower pace than the previous month.
Retail trade had been continuously declining since March of last year, before rising by 1.1 percent in May and 2.7 percent in June of this year. The growth continued in July, but at a slower rate than the previous month.
“The initial results from the Croatian Bureau of Statistics confirmed our expectations that real growth in retail trade will continue year-on-year, but at a weaker intensity than in June,” noted analysts from Raiffeisenbank Austria in their commentary on the CBS data.
The growth in retail trade was supported by a low base, given that consumption had been continuously declining since March of last year, as well as by tourist spending, which was higher in July than last year.
Although further growth in consumption is expected in the coming months, thanks to the tourist season, its recovery is not anticipated to occur soon due to weaknesses in the labor market.
“We also expect continued growth in retail trade in August, with a likely slight acceleration in growth, considering the expected increase in the number of tourist overnight stays in August year-on-year. However, we cannot speak of a recovery in consumption, or retail trade, this year as labor market trends, which are the main factor influencing retail trade, remain unfavorable,” concluded analysts from Raiffeisenbank Austria.
A more detailed report on retail trade will be published in about ten days.
