ZAGREB, January 4, 2019 - Data from the fiscalisation system show that consumption in 2018 increased on the year, with the total amount of receipts issued exceeding 184 billion kuna, up 7.98%, while the number of receipts issued went up 0.76%, the Tax Administration said on Thursday.

Over 2.363 billion receipts were issued in 2018, as against 2.345 billion in 2017. Their total amount was 184.08 billion kuna, as against 179.48 billion kuna in 2017.

The average receipt amount was 77.89 kuna, up 7.16% on the year (72.69 kuna in 2017).

In December 2018, consumption went up more than 7% on the year. The number of receipts issued totalled more than 179.9 million, up 0.36%. Their amount totalled 14.858 billion kuna, as against 13.795 billion kuna in December 2017.

The average receipt amount went up 7.32%, from 76.96 to 82.59 kuna. The highest number of receipts was issued on December 21, about 7.7 million. In December 2017, the highest number of receipts was issued on the 22nd, about 7.9 million.

In the weekend before Christmas 2018, December 14-16, nearly 16.5 million receipts were issued, while in the Christmas weekend, December 21-23, their number jumped 19.27% to 19.63 million.

Consumption in Croatia in the weekend before Christmas totalled 1.42 billion kuna, jumping 28.63% in the Christmas weekend to 1.83 billion kuna. The average receipt amount in the Christmas weekend was 93.10 kuna, as against 86.33 kuna the weekend before.

More news on the Croatian economy can be found in our Business section.

ZAGREB, January 2, 2019 - Over 159,000 tourists visited Croatia during the Christmas and New Year holidays, generating 385,500 overnights, the Croatian Tourist Board (HTZ) said on Wednesday.

Between December 21 and 31, 159,031 arrivals and 385,514 bed nights were recorded, which are respective increases of 13 percent and nine percent compared with the same time in 2017, HTZ said.

Foreign tourists accounted for 114,000 arrivals (+14%) and 289,000 bed nights (+12%). Most of the bed nights were generated by holidaymakers from Austria (56,000), followed by those from Slovenia (43,000), Italy (36,000), Germany (33,000) and Bosnia and Herzegovina (22,000).

The top 10 destinations during the Christmas and New Year holidays were Zagreb, Opatija, Dubrovnik, Poreč, Rovinj, Split, Mali Lošinj, Zadar, Umag and Crikvenica.

More news on Croatia’s tourism industry can be found in our Business section.

ZAGREB, January 1, 2019 - Croatia recorded 19.7 million tourist arrivals and over 106 million overnights throughout 2018, which was respectively by 6.5% and 4% more than in 2017. These statistics were presented by the director of the Croatian National Tourism Board (HTZ), Kristjan Staničić, in the resort of Opatija on the first day of 2019.

He said that activities promoting Croatia's tourist trade were being intensively conducted on the markets from which large numbers of tourists usually come to Croatia.

Staničić commented that investments in the tourism sector in 2018 amounted to a billion euro and that the same level of investments could be expected in 2019.

More news on the Croatian tourism industry can be found in our Travel section.

ZAGREB, December 17, 2018 - A quarter of companies in the European Union use cloud computing services, and Croatia is above the EU average, with 31 percent of its businesses with more than 10 employees using these services, according to a survey on the use of information and communication technologies in enterprises in 2018, carried out by Eurostat, the EU's statistical office.

In 2018, 26% of EU enterprises with at least 10 persons employed purchased cloud computing services. Cloud computing usage grew rapidly over the last few years, as in 2014 it stood at 19% and in 2016 at 21%, Eurostat said.

Large enterprises use cloud computing much more (56% of enterprises employing 250 persons or more) than small ones (23% of enterprises employing 10 to 49 persons). Over the last four years (between 2014 and 2018), the highest increase in cloud computing usage was observed in large enterprises (+21 percentage points), compared with +12pp in medium sized enterprises and +6pp in small enterprises, the survey showed.

The survey revealed significant differences across countries in regards to cloud computing usage. Over half of enterprises in Finland (65%), Sweden (57%) and Denmark (56%) used cloud computing. At the opposite end of the scale, cloud computing services were used by 10% or fewer enterprises in Bulgaria (8%) and Romania (10%).

Croatia was above the EU average, with 31 enterprises with more than 10 employees using cloud computing services. It was closest to Estonia, where 34% of companies used these services.

In 2018, enterprises used cloud computing mostly for e-mail (69% of enterprises that used cloud computing), closely followed by the storage of files in electronic form in a cloud (68%).

Enterprises less frequently purchased computing power to run the enterprise's own software (23%), or used CRM software applications over the cloud for managing information about customers (29%).

In the EU, 12% of enterprises with at least 10 persons employed reported analysing big data. Such analyses are predominantly done by large (33%) and medium sized (19%) enterprises, and carried out by internal staff (8%) or by external service providers (5%).

Among member states, the largest shares of enterprises analysing big data were observed in Malta (24%), the Netherlands (22%), Belgium and Ireland (both 20%). The smallest shares were noted in Cyprus (5%), Hungary and Austria (both 6%), Bulgaria and Italy (both 7%).

The survey showed that 10% of enterprises in Croatia analysed big data.

Enterprises that analysed big data used a variety of data sources. Almost half of all enterprises analysed geolocation data from the use of portable devices e.g. portable devices using mobile telephone networks, wireless connections or GPS (49%), followed by data generated from social media e.g. social networks (45%).

Less than one third of enterprises analysed own big data from smart devices or sensors (29%) or data from other sources (26%).

Only 4% of EU enterprises with at least 10 persons employed used 3D printing in 2018. In large enterprises, the share of 3D printer usage stood at 13% compared with 3% in small enterprises.

The largest shares of enterprises using 3D printing in 2018 were observed in Finland (7%), Denmark, Malta, the United Kingdom and Belgium (all 6%). The smallest shares were reported by enterprises in Cyprus and Latvia (both 1%), followed by Estonia, Bulgaria, Greece, Hungary, Romania and Poland (all 2%).

In Croatia, 3% of enterprises used 3D printing this year.

More than half of enterprises that used 3D printing used this technology for prototypes or models for internal use (57%). Less than one third used 3D printing for prototypes or models for sale (32%) or for goods to be used in the enterprise's production process (27%). Only 17% used 3D printing for goods other than prototypes or models to be sold, Eurostat said.

More news on Croatia’s economy can be found in our Business section.

ZAGREB, November 19, 2018 - Croatian airports received 8.99 million passengers in the first nine months of 2018, an increase of 10.4% over the same period in 2017, figures from the National Bureau of Statistics (DZS) show.

In September alone, the number of passengers recorded was 1.43 million, or 9.7% more than in the same month last year.

Of the total number of passengers recorded in all nine airports in September, the largest number used Split Airport (453,000 passengers, +8.1%), followed by Dubrovnik Airport (383,000, +10.5%) and Zagreb Airport (343,000, +4.4%).

Pula Airport received 123,000 passengers (+23%) and Zadar Airport 90,000 (+14.6%).

Rijeka Airport recorded 27,000 passengers (+16.6%), Osijek Airport received 7,000 (+20.5%), Brač registered 6,600 passengers (+49%), while the smallest airport, Mali Lošinj, saw a 15.5% increase in the number of passengers to 440.

Passengers mostly came from Germany, the United Kingdom, France, Sweden and the Netherlands and passengers from all countries but Sweden saw an increase in their numbers.

The airports registered 15,466 flight operations (+14.9%) in September. They handled 1,218 tonnes of cargo (-2.9%) in September and 9,119 tonnes (33.1%) in the January-September period.

The increase in the number of passengers using Croatian airports is first and foremost a consequence of the record-breaking tourist season.

For more on flights to Croatia, click here.

ZAGREB, November 9, 2018 - According to working-day adjusted data, household consumption in September 2018 rose 0.4% from the previous month and by 3.9% from September 2017, the national statistical office (DZS) said in a report on retail sales on Thursday.

The consumption growth rate in September was higher than in August, when consumption grew 3.1% year on year.

The September increase in consumption is a continuation of a record positive trend, considering that an annual drop in consumption was last registered in August 2014. This is the first time since the DZS started keeping record of household consumption statistics that consumption has grown for the 49th consecutive month.

In the first nine months of this year retail sales grew 3.6% in real terms from the same period of last year.

This shows that the national economy continues to be based predominantly on services related to commerce and tourism, Raiffeisenbank Austria (RBA) analysts said in a comment on the DZS statistics.

They expect retail sale growth to continue at solid rates in the coming months, owing to very good post-season tourism results, declining unemployment, a mild rise in employment and higher consumer confidence.

RBA analysts expect that, in the context of a still moderate inflation and low refinancing costs, disposable income will continue growing.

Croatia's exports amounted to 79 billion kuna in the first nine months of this year, rising by 4% compared to the corresponding period in 2017, whereas imports reached 130.3 billion kuna, up 6.1%, according to preliminary figures released by the State of Bureau of Statistics (DZS) on Thursday.

The foreign trade deficit came to 51.3 billion kuna, up 4.5 billion kuna year on year, and coverage of imports by exports fell from 61.9% to 60.6%.

Exports to EU countries totalled kuna 54.2 billion, climbing by 10.2% compared to the first nine months of 2017. Exports to non-EU countries dropped by 7.3% to 24.8 billion kuna.

Imports from EU countries increased by 6% to 101.5 billion kuna and those from non-EU countries rose by 6.8% to 28.9 billion kuna.

Expressed in euro, Croatia's exports came to 10.6 billion euro, up 4.3% over the January-September period of 2017, and imports went up by 6.4% to 17.6 billion euro. As a result, the foreign trade deficit totalled 6.3 billion euro.

Total deposits with Croatian commercial banks reached 288 billion kuna at the end of September 2018, increasing by 14 billion or 5.2 percent from September 2017, Raiffeisenbank Austria (RBA) said in an analysis of central bank (HNB) data on Thursday.

This marked a continuation of the growth trend which began in December 2011, mostly thanks to a strong increase in demand deposits.

Demand deposits, which include funds in current and giro accounts and banks' obligations arising from kuna payment instruments issued, exceeded 86 billion kuna in September, up 23.8 percent over the same month last year.

On the other hand, total savings and time deposits have been on the decline since October 2016. At the end of September 2018, they stood at 202 billion kuna, down 1.1 percent from September 2017.

The fall in savings and time deposits is the result of a fall in foreign currency deposits, as kuna-denominated savings and time deposits rose both on monthly and annual levels, exceeding 35 billion kuna, RBA said.

On the other hand, foreign currency savings and time deposits, which account for about 82 percent of all savings and time deposits, fell by 1.5 percent to kuna 166.5 billion year on year.

The structure of and trends in deposit amounts clearly show a greater inclination to holding liquid assets, which is certainly motivated by record-low interest rates on savings, RBA said, adding that this is the result of high liquidity in the financial system thanks in part to the central bank's expansionary monetary policy measures.

RBA said that the Croatian financial system would be marked by high liquidity throughout 2018, which along with modest lending growth rates implied a continuation of low passive interest rates. As a result, increased savings are likely to be directed more into demand deposits and less into savings and time deposits, it concluded.

For more on Croatia’s economy, click here.

ZAGREB, November 3, 2018 - At the end of July 2018, Croatia's gross foreign debt was 39.4 billion euro, dropping by 2.2% or by 870 million euro in comparison to July 2017, and thus, it continued decreasing for 32 months in a row year-on-year, the Croatian Chamber of Commerce (HGK) has reported.

The stable and favourable circumstances on the domestic financial market, which is experiencing high liquidity and low interest rates are reasons why all sectors have no need for any larger foreign borrowing thus avoiding additional risks in connection with foreign financing, the HGK says in its analysis of the country's trends.

Broken down by sectors, it was the central bank with the highest deleveraging this July. The Croatian National Bank (HNB) cut its debt by 14.9% year on year. Other monetary institutions followed with their debt decrease by 12.7%, thus having a 75-month-streak of deleveraging.

The gross foreign debt of other domestic sectors fell by 5.9%, going down by 31 months in a row.

General government gross foreign debt increased by 2.1% on the year, and its share in the overall gross foreign debt came to 35.1%. The share of other domestic sectors in this debt was 34.6%, and direct investments accounted for 16.7%, whereas the share of other monetary institutions stood at 9% and the HNB's share at 4.6%.

The HGK analysis notes that a level of the country's gross external debt was brought back to the levels in 2008, however with marked changes in the share of certain sectors in the total debt.

The HGK's analysts expect the ratio of gross foreign debt to GDP to fall to 75% by the end of this year, in parallel to improvements of other indicators of borrowing, and all of that is likely to have a positive effect on Croatia's credit rating.

If you want to read more about Croatian economy, click here.

ZAGREB, November 2, 2018 - Croatian airports received 7.56 million passengers in the first eight months of 2018, an increase of 10.5% over the same period in 2017, figures from the National Bureau of Statistics (DZS) show.

In August alone, the number of passengers recorded was 1.8 million, or 7.6% more than in the same month last year.

Of the total number of passengers recorded in all nine airports in August, the largest number used Split Airport (625,000 passengers, +5.8%), followed by Dubrovnik Airport (479,000, +9.2%) and Zagreb Airport (372,000, +7.2%).

Pula Airport received 161,000 passengers (+16.9%) and Zadar Airport 115,000 (-4.3%), the only airport to register a fall in the number of passengers compared to August 2017.

Rijeka Airport recorded 40,000 passengers (+18.4%), Osijek Airport received 9,500 (+33.2%), Brač registered slightly over 6,000 passengers (+4.2%), while the smallest airport, Mali Lošinj, saw a 24% increase in the number of passengers to 1,079.

Passengers mostly came from Germany, the United Kingdom, France, Italy and Spain, and only the UK passengers saw a decline in their numbers, while the number of visitors from the other four countries increased.

The airports registered 19,271 flight operations (+5.1%) in August and 88,654 (+6.5%) in the first eight months of the year. They handled 1,017 tonnes of cargo (+1.1%) in August and 7,900 tonnes (41%) in the January-August period.

It is not difficult to explain the increase in the numbers. With the tourism breaking records this year, it is only understandable that the number of passengers at airports is also increasing. The trend is expected to continue in the future as well.

To read more about Croatian airports and their services, click here.

ZAGREB, October 30, 2018 - Croatia's industrial production in September 2018 fell by 2.6% from September 2017, its sharpest year-on-year decline since January 2015, according to figures released by the National Bureau of Statistics (DZS) on Tuesday.

Industrial production in September slid by 1.5% from the previous month and by 2.6 from the same month last year. It was the biggest decline since January 2015, when industrial output plunged by 4.3%. This August, it decreased by 1.1% year on year.

With the rates of decline on both the monthly and the annual level, the volume of industrial production continued to fall for the third month in a row, Raiffeisenbank Austria (RBA) said in its analysis of the DZS report.

Production has been very unstable since the end of last year, recording year-on-year decreases in nine of the last 11 months. During that time, it rose only in February and June.

In September 2018, the production of consumer durables sank the most, by 10.4%, followed by the production of capital goods, which fell by 9.5%. The production of consumer non-durables decreased by 1.9% and that of energy by 0.7%. Only the production of intermediate goods saw a year-on-year increase, of 2.1%.

The manufacturing industry, which accounts for about 80% of the total output, continued to record negative rates for the third consecutive month, falling by 1.5% in September.

In the first nine months of this year, production was 0.3% lower than in the same period last year.

RBA estimates that the growth of industrial production for 2018 will be somewhat lower than last year, when it grew by 1.9%. This means that the growth will have been slowing for the second year running. "To achieve stronger growth rates, it is necessary to strengthen the competitiveness of the entire economy, so that the growth of domestic and foreign demand can for the most part be met from domestic sources," RBA said.

If you want to know more about Croatia’s economy and business sectors, follow our dedicated section.

ZAGREB, October 26, 2018 - Croatian employment and unemployment fall. At the end of September, there were 1.43 million people in work in Croatia, which is 0.9 percent or 12,911 fewer than at the end of August, while the unemployment rate fell to a new record low of 8.4 percent, the latest data from the national statistical office shows.