ZAGREB, 22 April, 2021 - The general government generated a consolidated deficit of HRK 27.5 billion, or 7.4% of GDP in 2020, with the consolidated general government debt also increasing, according to a report on which the national statistical office released on Thursday.

The deficit thus ended a three-year streak of surplus.

For comparison's sake in 2019 the government generated a consolidated government surplus of HRK 1.2 billion or 0.3% of GDP while in 2018 it amounted to HRK 863 million or 0.2% of GDP and in 2017, the surplus was HRK 2.8 billion or 0.8% of GDP.

The general government budget deficit occurred in 2020 mostly due to the repercussions of the COVID-19 pandemic for the national economy, which required the government's support measures to offset the impact.

The consolidated government debt in 2020 reached HRK 329.7 billion or 88.7% of GDP after that debt had gradually decreased for several years, the State Bureau of Statistics (DZS) said in the report. 

At the end of 2019 the general government debt amounted to HRK 292.9 billion, which accounted for 72.8% of GDP. In 2018 it was HRK 286.3 billion or 74.3% of GDP and in 2017 it was HRK 285.1 billion or 77.6% of GDP.

The general government debt increased by HRK 36.8 billion in 2020 or 12.6% year on year with HRK 32.8 billion being net loans and the remainder attributed to depreciation of the kuna currency exchange rate against the euro, DZS says in the report.

RBA: Results better than expected

Commenting on the latest DZS report, Raiffeisenbank Bank Austria (RBA) analysts underscored that the budget gap of HRK 27.5 billion is better than had been expected.

They also attributed the noticeable deterioration in fiscal metrics to the consequences of the crisis caused by the COVID-19 pandemic which resulted in a double-digit contraction in budget revenue while at the same time generating an increase in general government spending.

The total consolidated government revenue in 2020 amounted to HRK 178.5 billion, which is a decrease of HRK 12.5 billion or 6.5% while at the same time expenditure amounted to HRK 205.9 billion, which is HRK 11.3 billion or 8.6% more y-o-y.

(€1 = HRK 7.567595)

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ZAGREB, 9 April, 2021 - In March 2021, producer prices of industrial products increased by 1.5% compared to February 2021 and by 3.5% compared to March 2020, the Croatian Bureau of Statistics said on Friday.

On the domestic market, producer prices increased by 1% compared to February 2021 and by 3.2% compared to March 2020, while on the non-domestic market they increased by 2% compared to February 2021 and by 3.8% compared to March 2020.

In March 2021, as compared to February 2021, prices of energy increased by 4.3%, prices of durable consumer goods by 1.5%, prices of intermediate goods by 1.3%, prices of non-durable consumer goods by 0.3% and prices of capital goods by 0.2%.

As compared to March 2020, prices of energy rose by 13.5%, prices of intermediate goods by 2.2%, prices of durable consumer goods by 1.4%, and prices of capital goods by 1.2%, while prices of non-durable consumer goods fell by 0.5%.

In March 2021, as compared to February 2021, producer prices increased in Manufacturing by 1.8% and in Electricity, gas, steam and air conditioning supply by 0.1%, decreasing in Mining and quarrying by 4.4% and remaining stable in Water supply; sewerage, waste management and remediation activities.

As compared to March 2020, producer prices increased in Mining and quarrying by 50.3%, in Manufacturing by 2.9% and in Water supply; sewerage, waste management and remediation activities by 0.6%, while decreasing in Electricity, gas, steam and air conditioning supply by 2.0%.

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