DZS: Consumption in Croatia Increased for the 16th Consecutive Month

In Croatia, retail consumption increased by 4.3 percent year-on-year in May, strengthening for the 16th consecutive month, but at a slower pace than the previous month.

The Croatian Bureau of Statistics (DZS) published a report on retail trade on Thursday, and according to seasonally adjusted data, consumption in May rose by 2.3 percent compared to the previous month, while it strengthened by 4.3 percent compared to May of last year.

Consumption has been continuously rising year-on-year since February 2021, for the 16th consecutive month, but in May the growth was slower than in April, when the growth was 5.7 percent.

In May, the turnover from the retail trade of food, beverages, and tobacco products remained unchanged year-on-year, while the turnover from the trade of non-food products, excluding motor fuels and lubricants, increased by 6.7 percent, according to DZS data.

In the first five months of this year, retail trade turnover increased by 3.3 percent in real terms compared to the same period last year.

The growth in consumption in May indicates a continuation of economic growth in the second quarter.

Recently, the DZS announced that in the first quarter, gross domestic product increased by 7 percent compared to the same period last year, marking the fourth consecutive quarter of economic recovery from the coronavirus crisis.

– The effect of the base period and strong uncertainty due to geopolitical events will certainly slow the dynamics of positive changes in trade activity. High inflation perception, heavily influenced by rising food and energy prices, also acts to restrain consumption. On the other hand, employment growth and unemployment reduction will continue at moderate rates – analysts from Raiffeisenbank Austria (RBA) noted in their commentary on the DZS report.

They expect a good tourist season and double-digit growth rates for both physical and financial indicators.

“This will certainly contribute to the preservation of disposable income and thus positively influence retail trends,” conclude RBA analysts.