ZAGREB, May 24, 2020 - Analysts polled by Hina on Croatia's GDP trends in the first quarter of 2020 give different opinions on whether the economy grew or contracted in that period, however, they all estimate that it is going to decline, anyway, this year due the corona crisis.

The national statistical office (DZS) will release first estimates of the Q1 economic growth in a few days, and the six analysts polled by Hina are divided in their estimates whether Croatia's growth was positive or negative.

Thus, three analysts forecast a decline ranging between 0.5% and 4% in the Q1 2020. If the estimates prove correct, this will bring an end to a rising streak since mid-2014.

The other three analyses predict positive growth between 0.5% and 1%. If these estimates prove correct, it will mean that this will be the slowest growth rate since the end of 2014.

All six analysts also assess that personal consumption remains the biggest contribution to GDP.

The retail trade in Q1 2020 increased by 0.9% compared to the corresponding period in 2019. This was, however, a slower pace than the growth of this parameter in recent years.

On the other hand, the outbreak of COVID-19 and the consequences of that pandemic, including the lockdown in the second half of March as well as travel restrictions that affected the tourist trade, were the reasons for a drastic slump in consumption.

Croatia's economic output in the Q1 2020 plunged 4.2% on the year, and exports stagnated.

Sharpest economic decline in Q2 since coronavirus lockdown begins to take a toll

The six analysts also predict the sharpest downturn in Q2 2020 since the start of keeping statistics in 2000. The estimated decline is between 15% and 25%.

At the outbreak of the financial crisis in Croatia in early 2009, the economy contracted 8.8%, which was a record plunge. 

Corona crisis to be shorter than financial one just over a decade ago

The sharp slump in the second quarter of this year is expected to be offset to some extent by the economic performance in the second half of 2020 when lockdown measures are likely to be eased and enterprises can begin the business as normal. 

Thus, the analysts' growth estimates for the whole of this year are between -7.5% and -12.5%.

EC: Croatia can quickly rebound in 2021, as it is in better shape than in 2008

On 6 May, the European Commission said that Croatia’s economy entered the COVID-19 crisis in significantly better shape than the crisis in 2008 and is expected to quickly recover in 2021.

After the contraction of an estimated 9.1% in 2020 due to the corona crisis, Croatia's economy is likely to rebound at a rate of 7.5% in 2021, according to the EC spring forecasts. The EC forecasts are more optimistic than the Croatian government's projections of the downturn of 9.4% in 2020 and the  6.1% rebound next year.

ZAGREB, May 24, 2020 - The Centre for Missing and Abused Children has warned that runaway children are at risk of becoming victims of abuse, exploitation, and human trafficking, and last year alone 1,461 children ran away from the family home or an institution in Croatia.

In 2019, according to Interior Ministry data, 326 children ran away from the family home and 1,135 from a correctional institution, the Centre has said on the occasion of International Missing Children's Day, observed on May 25.

Thirty-eight of the children who ran away from the family home were under 14 and it is especially worrying that in eight cases a crime was committed against the child at the time of the escape, the Centre added in a press release.

The Centre operates a 116000 hotline, which is the national number for reporting missing children.

"The disappearance of children is considered one of the riskiest situations in which various crimes can be committed against a child, such as abuse, exploitation, or human trafficking," the press release said.

European centres also work on the protection of children on the Internet because of the risk that a child becomes a victim of abduction or human trafficking. The Croatian centre also works on campaigns to raise awareness of the potential dangers that can occur when a child runs away.

"From the very beginning, we have been advocating better cooperation between the police, social welfare centres, institutions which accommodate children and other relevant bodies, notably for the establishment of the Amber Alert system which is operational in most European countries as an excellent tool to locate a child," the press release said.

May 24, 2020 - The director of Plitvice Lakes National Park, Tomislav Kovacevic, said during HRT's 'Theme of the Day' show that, naturally, they have to raise ticket prices in the season, given that they have almost 700 employees.

Index.hr reports that Plitvice Lakes National Park had lowered ticket prices - and currently, you can enjoy Plitvice for 50 kuna. However, prices will soon rise to 90 and return to 200 kuna. Kovacevic stated that this year, they introduced two promotional weeks, primarily for the local population, so that they could afford a visit.

"The Croatian public is perhaps less familiar with the fact that from November 1 until March 1, the price is very affordable. It was 60 kuna for years, this year it will be 80 kuna, so acceptable again. Anyone who has seen Plitvice under the snow, will certainly return," Kovacevic said.

He added that they started well at the beginning this year, but there was a break due to the coronavirus pandemic. However, he is pleased with the trend after May 11.

"I can almost say that the season has started at Plitvice Lakes, regardless of the fact that we have a promotional spring. Every day we have 5,000 or more visitors, which is a limited number, 50 percent of what we normally receive," Kovacevic said.

He stated that due to the protection of Plitvice, one-way traffic was introduced and there are no more long-distance boat rides, and train rides are also excluded.

The director of the Kornati National Park, Sime Jezina, said that in the last two months, they had estimated that there would be no season at all, and now they have come to the conclusion that they will do well this season, and maybe have an extraordinary post-season.

Jezina points out that they earn most of their income in June, July, August and even September. 

"So far, these two months have not had an excessive effect on our revenue side," says Jezina, adding that he does not dare to say that the figures will be like last year's or the year before that, but that he is still optimistic.

Jezina states that the Kornati Islands are a huge territory, so even in August, there are places to sail, and he hopes that this year nautical tourism will be an absolute hit.

To read more about lifestyle in Croatia, follow TCN's dedicated page.

 May 24, 2020 - TCN launched the Total Croatia Travel INFO Viber community 5 days ago. It has been quite a ride. 10 things I learned since we started. 

Last weekend, I called PR guru and champion of orange shoe fashion, Kresimir Macan, suggesting he take me in his Porsche to the main border with Slovenia at Bregana. With information so hard to find, a little first-hand reporting might be useful. MUP were extremely responsive by email with the media permission and very helpful at the border. You can see the realities of life on the Croatian-Slovenian border on May 17 here. 

"We have that really good Viber account, Koronavirus.hr for corona updates. Why doesn't the Ministry of Tourism have the same for the latest travel advice?"

"Why don't you make your own Viber community?" asked Macan. 

"I wouldn't know where to start."

Two days later... 

I have known Kreso for 6 years. And I have known many who have worked for him. They are some of the brightest minds who go on to do incredible things in the public and private sector. So when he suggested I come to the office and have a chat with his two interns, I knew it would not be just a chat. 

After we got over the initial embarrassment that I did not know how to download Viber to my desktop (thanks, kids!), we - or rather they - got to work. In precisely 22 minutes, we were live with my Viber community Total Croatia Travel INFO (and you can join too - but you need to download the app). 

Nobody has helped me more in the last 5 years than Macan. He is a controversial chap and a polarising figure (he is the erstwhile Communications Director for current Prime Minister Plelnkovic), but he is a master of his craft. I sat and watched, and within an hour, we had an infographic with the relevant info that people needed to know.  

Ann thanks to the generosity of our Viber community, that infographic is now available in 12 languages. There is also a consolidated Croatia travel master article which is updated daily. You can bookmark it here. 

It has been quite a ride. 10 random things I learned from the Total Croatia Travel INFO community that I did not know last week. (Let me put a MASSIVE disclaimer here that you should check all info independently with official sources to be 100% sure - all the info looks very credible, but please check before you travel)

1. You can apparently fly from the UK to Croatia before June 15, just not directly.

2. Hungarians REALLY want to come to Croatia

And you are very welcome! About 30% of the chat in the community has been in the Hungarian language. Thanks to the Viber auto-translate feature, we are able to understand and answer their questions where we can, or direct them to the relevant official contact.

To help things along, our little Viber community created a Hungarian version of the infographic. 

Many thanks to our community member Mariann Markai for volunteering a Hungarian translation of our May 21 update. 

And this cool new feature from Google allows you to be fully updated with the latest in any language you choose. For our Hungarian guests, wecome to Croatia and have a great stay.

3. It seems you can fly from the USA to Croatia if you have the right passport and circumstances

I have no more info on that, but you can always join our Viber community and request more details. You can join here.

4. Different countries have different corona info requirements.

In Croatia, the focus has been on how many cases (zero yesterday) and how many deaths (99 in total). But potential tourists have been asking lots of questions about how many people have been tested in Croatia. You can see full details of that and how Croatia compares on many corona stats here. 

5. There is a big need for a clear explanation on quarantine rules and test requirements entering Croatia (none) and returning to the home country. 

6. There is a big need for a clear explanation on the border crossing experience.

Who can, who can't, under which conditions. Are all borders open etc. This was my experience at the Slovenian border on Sunday, May 17. 

7. Flight information IS out there, and new flights are being announced.

Source the Total Croatia Travel INFO Viber community via Avioradar.

You can keep up with the latest flight announcements on the TCN latest flights page.

8. While the official information by Croatian authorities has improved MASSIVELY, it is still failing both tourists and the tourist businesses they represent. Sadly. 

Here's why. And I really hope for all of us that this will change as quickly as tomorrow. 

9. Community is strong and the quickest way to get the very latest. Build a strong community which respects others and helps out where it can, and there is no need for anything else regarding travel info. Or anything else. 

10. I am too old for all this, but I see a massive future for my kids. It has been an incredible few days, and I think we made Croatian travel info a little easier to find. 

Join us! Contribute your knowledge, ask your questions, and our community will try to get them answered, or send you to the right place to ask. You can join here (you will need to download the Viber app). Why Viber? I am advised that it is the best platform to allow unlimited numbers in groups and communities. Smart. 

For the latest travel info from Croatia, bookmark this article, which will be updated daily. 

May 24, 2020 - HNS released instructions for holding Croatian First League football matches during the coronavirus pandemic. 

Nogomet Plus reports that according to the plan yet to be approved by the National Civil Protection Headquarters, the football season continues next week, on May 30, when Slaven Belupo and Lokomotiva meet in Koprivnica as part of the Croatian Cup semifinals. The next day, Rijeka and Osijek will compete at Rujevica, and the continuation of the first league season is planned for June 5, when Hajduk and Inter Zapresic meet in the first game of the 27th round.

On that occasion, the Croatian Football Federation (HNS) published instructions for holding matches during the coronavirus pandemic, but also changes in the propositions of the competition to better adapt to the current times marked by COVID-19.

The most significant change is that the matches will be played without the presence of spectators and with a minimum number of people needed in the stadium. Thus, the propositions stipulate that a maximum of 161 people can participate in one match, as follows:

Fenced part of the pitch:

Teams: up to 18 players
Officials on the bench: maximum 6 licensed persons
Referees: 4
Ball collectors: maximum 6
Persons with stretchers: maximum 4
TV crew: 2 or 4 cameramen + 2 technicians
Photojournalists: 4 (exceptionally + 1 HNS)
Technical - terrain maintenance: 4

In the stands:

Delegate and controller: 2
Club managements: host up to 15 people and guest up to 10 people
Official announcer, traffic light technique, TV crew CROATEL, commentators Arenasport or HNTV, HR2 and local radio according to the license: 15
PRESS Lodge: maximum 10 accredited journalists
HNS: maximum 10 people
Doping control: 2
Reserve players and staff members: maximum 5 per club in a separate part of the stand

Around the stadium:

VAR judges and technician: 3
Host club staff - technical staff: maximum 10
Security guards: usually up to 10
Ambulance (or replacement vehicle): 3
TV crew-reportage car: maximum 8

The matches are held in accordance with the epidemiological instructions prescribed by the Civil Protection Headquarters of the Republic of Croatia and the HNS working group dedicated to the preparations for the continuation of the competition.

It was also decided that clubs will no longer have the right to register 12 substitutes, but that number has been reduced to 7, and during the match, a maximum of 5 changes can be made in three intervals while another change is possible in case of overtime.

Press conferences were canceled after the game, and instead, club spokespersons will be obliged to take a statement from the coach and two players of their club, which will then be given to journalists through digital channels. Coaches, on the other hand, are required to make a statement to TV in order to fulfill their obligations under the TV rights agreement.

The players of both teams and the referees of the match will no longer go out on the field together in a row. The fourth referee will first check the people on the benches, then the visiting team, then the home team and finally the main and assistant referees. There will be no more greetings from players and referees and coaches before the initial whistle.

When choosing the sides, the distance between the head referee and the team captain must be at least 1.5 meters, and they must be about 7 meters away from the longitudinal line of the field. Handling is prohibited on this occasion.

After scoring, the players are instructed not to hug, shake hands or physically touch during the celebration, and throughout the game they should avoid unnecessary physical contacts that do not serve the purpose of the game.

After the match, there is no greeting on the field between the players, club officials, and the referees.

This is what a football match will look like in the era of the new normal.

To read more about sport in Croatia, follow TCN's dedicated page.

May 24, 2020 - Croatia Airlines CEO Jasmin Bajic spoke to “AirInsight” about how the national carrier plans to recover from the effects of COVID-19.

Namely, Ex Yu Aviation reports that Croatia Airlines should recover from the effects of the pandemic by 2022, and that it would better position itself in new markets. 

“Being a small airline may be an advantage to surviving the global turmoil - we can be more flexible during this time and more daring in seizing any new opportunity on the market. There is a downside as well - there are fewer means for investment compared to the bigger carriers. We are considering a few scenarios for the post-pandemic Croatia Airlines and each of them has the goal of positioning the company onto new markets and strengthening its position in existing markets," said Bajic.

Bajic also spoke about the national carrier's recovery, and that it should be back on track by 2022.

“The pre-recovery has started but our industry will need two or three years to truly get back on its feet. We are gradually adding more flights into the distribution systems and we are seeing a positive market response. I would say that the main question is not when the recovery will start but how long it will take to recover. Me and my management team are confident that we can reach our 2019 figures by 2022. Personally, I would not be surprised to see Croatia Airlines’ figures reaching 2019 levels by the end of 2021, but we all agree that the recovery will be a long-lasting process during which we may again be exposed to another wave of the virus spread. Having said that, I also want to emphasise that, besides “U” shape and “V” shape scenarios, we need to be prepared for other scenarios too. This applies to many airlines around us as well. Many carriers will have to downsize for an unspecified time”.

Bijac concluded by saying the airline would not only connect Croats with Europe and the rest of the world, but would also provide connections for Croatian people within the country and offer direct links to Croatian holiday destinations around Europe.

“Croatia Airlines is a regional carrier with the prime purpose of connecting Croats with Europe and the rest of the world through major European hubs with connections to the networks of our Star Alliance partners. We will continue to connect major European hubs as this is our strategy and it will remain unchanged. However, we will also provide connections for Croatian people to fly within the country and we will continue to provide direct links to Croatian holiday destinations from around Europe. We believe that the hub and spoke system will survive. Croatia Airlines is a strong regional operator with a clear goal. It is also well connected with many other airline partners through its interline and codeshare agreements and part of the best alliance in the world - Star Alliance," Bijac concluded.

To read more about travel in Croatia, follow TCN's dedicated page. 

May 24, 2020 - At the launch of the polar cruiser Ultramarine, the owner of the DIV group Tomislav Debeljak announced a new project. Brodosplit will construct the largest luxury yacht in the world, named "Njord". It is a 281.8-meter long residential yacht built for Ocean Residences Development from Malta. It will be made in Brodosplit and in the Norwegian shipyard Kleven Verft, which is also part of the DIV group.

Morskli.hr reports that the ship's metal construction will be made at Brodosplit, as well as a large part of the installations. The hull of the ship made in Split will be towed to Kleven Verft where the yacht will be equipped. It is planned that everything will be finished by 2024.

The yacht is 33.5 meters wide and will have 12 decks. Apartment accommodation on board will be divided into 118 residences that can be purchased, as well as 16 apartments for guests and butlers. Available in 20 different configurations, these residences will range from two to six bedrooms spanning 116 to 800 square meters, the reputable magazine Boat International writes in more detail about the equipment and purpose of the ship.

Designed to maximize privacy, comfort and security, each apartment features a living room with sea views and access to open terraces. Owners will be able to customize their apartments to their own taste, choosing furniture and decorations to their liking.

DIV/Brodosplit

Njord will boast an impressive list of luxury facilities that include several outdoor terraces, a sun deck, two outdoor pools, an indoor hydro pool, rich wellness facilities, and a nightclub and jazz lounge. The lounges of the telescope observatory will sit on the upper deck.

The vessel will be equipped to conduct scientific and oceanographic research during its annual world tour. Every year, it will travel to some of the most remote and "culturally unique" places on earth.

Njord will collect environmental and marine data from around the world, which will be available to international science laboratories.

The ship will be a fully equipped oceanographic research laboratory with an expert staff. Otherwise, the vessel will have a gyroscopic telescope, which will scan the sky at night, while drones will monitor the atmosphere.

DIV/Brodosplit

Meanwhile, submarine drones, along with Njord’s submarines, will map the ocean floor using multi-beam sonar to identify shipwrecks and seabed features. Njord will also have two eight-seater Airbus ACH 160 helicopters with a range of 400 nautical miles. They will be used exclusively by owners and guests.

Each of the 311 crew members will have their own private cabin, resulting in a 1:2 guest-crew ratio.

To read more about lifestyle in Croatia, follow TCN's dedicated page.

As Novac writes on the 22nd of May, 2020, through framework loans to banks, HBOR has enabled the approval of new liquidity loans to Croatian businesses, enterprises and entrepreneurs affected by the coronavirus pandemic.

The liquidity loans come with welcome interest rates reduced by 0.75 p.b when compared to regular loans. Zagrebačka banka d.d., Privredna banka Zagreb d.d., Erste & Steiermärkische Bank d.d., OTP banka d.d., Raiffeisenbank Austria d.d., Hrvatska poštanska banka d.d., Addiko Bank d.d. and Sberbank d.d., have all cooperated in the move.

Beneficiaries of these new HBOR liquidity loans can be micro, small and medium-sized enterprises, and medium-capitalised enterprises (with up to 3,000 employees) that weren't facing business difficulties on the 31st of December, 2019. Croatian businesses applying for this new type of loan should, according to the Methodology for Calculating a COVID score introduced by Fina, be assessed as clients whose business is at risk. Where exactly the need for additional funding actually lies is also imperative.

"This way of lending will enable the faster approval of funds needed by businesses along with a reduced interest rate. Namely, more than 1.2 billion kuna was made available to businesses for new liquidity loans, which banks will, thanks to HBOR's sources, approve at an interest rate reduced by 0.75 p.b. when compared to regular ones,'' said Tamara Perko, President of the Management Board of HBOR.

The maximum loan amount to an applying businesses can amount to no more than 35 million kuna, and the funds can be used to finance employee salaries, overhead costs and other basic operating costs, the procurement of raw materials and the settlement of liabilities to suppliers and other similar operating expenses. However, it should be noted that existing credit liabilities to commercial banks and other financial institutions cannot be settled with these funds.

For more information and for the possibility of loan approval, interested business entities should contact one of the previously listed commercial banks.

For more, follow our business page.