The Economic Climate Index (ESI) in Croatia rose by 6.7 points in May compared to the record low value from the previous month, reaching 79 points. However, it remains significantly below the long-term average of 100 points.
In April, it plummeted to the lowest level since the EC began publishing data for Croatia, as containment measures against the coronavirus epidemic were in effect from the first to the last day. These measures particularly affected sentiment in the service and retail sectors.
In May, the government began to ease restrictions, which encouraged business leaders across all sectors. The most significant improvement in sentiment was observed in the industry, reflected in a 9.7-point increase in the index. This was followed by the service and construction sectors, whose indices rose by 5.5 and 5.8 points, respectively. Consumers also expressed greater optimism, evident in a 4.5-point increase in the index. The most modest improvement was recorded in the retail sector, where the index rose by 3.8 points.
Business leaders also expect to increase hiring in the upcoming period, as indicated by a 9.5-point rise in the Employment Expectations Index (EEI) compared to the record low level in April, reaching 85.9 points.
Cautious Optimism in the EU and Eurozone
Business leaders in the EU and eurozone were more cautious in expressing optimism, with increased optimism in the industry dampened by further deterioration in expectations in the service sector. The ESI in the EU rose by a modest 2.9 points compared to the record low value in April, reaching 66.7 points. In the eurozone, it increased by 2.6 points, to 67.5 points.
