ZAGREB, 17 Sept 2021 - Consumer prices in Croatia rose by 3.1% in August 2021 compared with the same month in 2020, which is the highest inflation rate since April 2013, when it was 3.3%, according to figures released by the National Bureau of Statistics (DZS) on Friday.

The first stronger rise in inflation was recorded in April this year, of 2.1%. It slowed down to 2.0% in June, before picking up to 2.8% in July and 3.1% in August.

The rise is the result of the spillover of prices from global commodities markets, growing domestic and foreign demand, and a price convergence towards the EU average, notably with regard to services, analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.

The rise in consumer prices accompanied the rise in industrial producer prices, which grew by 9.3% in August 2021 compared with August 2020, their highest jump since January 2011. This year industrial producer prices increased by 3.5% in March, 5.8% in April, 7.6% in May, 7.2% in June and 7.9% in July.

Transport prices increased the most, by 9.9% compared with August 2020.

Compared with July 2021, consumer prices went up by 0.2% on average.

In the first eight months of 2021, compared with the same period of 2020, consumer prices rose by 1.7%. The greatest contribution to the rise came from energy prices, which increased by 5.2% on average. At the same time, consumer prices excluding energy rose by 1.0%.

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ZAGREB, 31 Aug, 2021 - An analysis of the Croatian Finance Agency (Fina) shows that in 2020, the businesses registered in Split-Dalmatia County had a consolidated net profit of HRK 571.3 million, down by 27% compared to 2019.

In terms of the total revenue in 2020, the Split-based Tommy retail chain topped the ranking with HRK 3.2 billion, and the Omiš-based Stuidenac ranked second, HRK 1.9 billion, and they were followed by the Vrgorac-based Pivac meat processing company, HRK 1.6 billion.

Last year, there were 15,308 businesses with their headquarters in Split-Dalmatia County.

Highest profit in 2020 made by sports betting company

Of them, the company with the highest profit was the Dugopolje-headquartered Hattrick-PSK bookmaker, HRK 242.1 million.

It was followed by the two shipbuilding companies, Brodotrogir (HRK 152.9 million) and Brodosplit (HRK 146.2 million)

Considering the number of employees on the payrolls of all those 15,308 businesses, the employed labour force was downsized by 2.8% from 2019 to reach 79,085 in 2020.

Tommy was the biggest employer, with nearly 3,000 people on its payroll. Studenac employed 2,456  workers in 2020.

According to Fina's data, last year, the total revenues earned by the businesses in this southern county came to HRK 48.5 billion, down by 8.4%, their expenditures were cut by 7.8% to HRK 47.5 billion.

(€1 = HRK 7.5)

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ZAGREB, 27 Aug 2021 - The robust growth in the second quarter of 2021 is within expectations based on the relevant indicators, the Croatian Chamber of Commerce (HGK) said on Friday in its comment on the preliminary data showing the Q2 16.1% economic growth year-on-year.

The HGK's analysis shows that all the big sectors had high growth rates in the second quarter compared to 2020 Q2.

For instance, industrial output increased 13.9%, retail trade jumped 20.5%, and the volume of construction work increased 16% in the second quarter this year, the HGK recalls. Furthermore, tourist arrivals skyrocketed 131.7% compared to the second quarter of 2020, and their overnight stays increased 129.2%.

The HGK says that all the basic activities contributed to the growth on the year.

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ZAGREB, 4 Aug, 2021 - The main Zagreb Stock Exchange (ZSE) indices closed mixed on Wednesday, with the Crobex increasing by 0.20% to 1,957 points and the Crobex10 decreasing by 0.13% to 1,204 points.

Regular turnover amounted to HRK 4.25 million, roughly the same as on Tuesday.

The only stock to pass the turnover mark of one million kuna was that of the HPB postal bank, turning over HRK 1.13 million. Its price went up by 3.6% to HRK 575 per share.

A total of 41 stocks traded today, with 16 of them registering price increases, 12 recording price decreases and 13 remaining stable in price.

(€1 = HRK 7.490424)

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ZAGREB, 3 Aug, 2021 - The main Zagreb Stock Exchange (ZSE) rose on Tuesday for the second consecutive trading day, with the Crobex increasing by 0.21% to 1,953 points and the Crobex10 by 0.38% to 1,205 points.

Turnover at the close of the trading session was HRK 4.26 million, roughly half as much as on Monday, and none of the stocks passed the turnover mark of one million kuna.

The highest turnover, of HRK 801,000, was generated by the stock of the Valamar Riviera hotel company. It closed at HRK 30 per share, up 1.69% over Monday.

A total of 37 stocks traded today, with 12 of them registering price increases, 12 recording price decreases and 13 stagnating in price.

(€1 = HRK 7.498284)

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ZAGREB, 28 July, 2021 - The Zagreb Stock Exchange (ZSE) indices on Wednesday changed slightly, going in opposite directions, while regular turnover was modest, however, overall liquidity was increased by the block trading in HT telecommunication company's shares, amounting to HRK 2.66 million.

The Crobex rose by 0.15% to close at 1,934.02 points while the Crobex10 dropped by 0.11% to 1,192.41 points.

Regular trading amounted to HRK 4.4 million, almost three million less than on Tuesday.

The total liquidity was increased by the block trading in HT shares in the amount of HRK 2.66 million, at a price of HRK 190 per share.

HT shares also generated a turnover of some HRK 203,000 in regular trading, closing at HRK 190.50 per share.

In regular trading, none of the stocks crossed the million kuna mark, the closest to it being Ericsson Nikola Tesla with a turnover of HRK 916,800. Its price rose by 0.30% to HRK 1,660.

Thirty-four stocks traded today, with 19 of them registering price increases, 9 recording price decreases and 6 remaining stable in price.

(€1 = HRK 7.523)

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ZAGREB, 28 July, 2021 - The Kraš confectionery group generated a net profit of HRK 21.9 million in the first half of 2021, an increase of HRK 8.6 million or 64.2% over the same period in 2020, according to its financial statement released on Wednesday.

Consolidated revenue reached HRK 488.2 million, up by HRK 30.4 million or 6.6%, with sales revenue totalling HRK 481.4 million. Sales revenue increased by 15.8% to HRK 257.7 million on the domestic market and by 9.1% to HRK 220 million on the foreign markets.

Expenditure increased by 4.2% to HRK 461.1 million. 

(€1 = HRK 7.523368)

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ZAGREB, 27 July, 2021 - The main Zagreb Stock Exchange (ZSE) indices rose slightly on Tuesday, with the Crobex increasing by 0.07% to 1,931.03 points and the Crobex10 by 0.08% to 1,193.73 points.

Turnover at the close of the trading session was HRK 7.3 million, about 2.8 million higher than on Monday.

The rise in the turnover was mostly driven by the stock of telecommunications equipment manufacturer Ericsson Nikola Tesla telecommunications, which turned over HRK 3.04 million. It closed at HRK 1,655 per share, up by 2.48% from Monday. 

No other stock passed the turnover mark of one million kuna.

A total of 34 stocks traded today, with 13 of them registering price increases, 11 recording price decreases and 10 remaining stable in price.

(€1 = HRK 7.528218)

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ZAGREB, 27 July, 2021 - Finance Minister Zdravko Marić on Tuesday did not accept proposals for a lower VAT rate on beverages and to treat labour costs as a tax deduction, while a representative of restaurant and bar owners said they would have to fend for themselves the best way they can regarding future challenges.

"My message to all restaurant and bar owners in the country, notably those who run bars, is that a very demanding period is ahead of us and that they will have to seek new loans and funding, despite the fact that we had yet another constructive meeting with the finance minister today. We can hope that in a couple of years we will have better working conditions because now that is not the case and we have not come across any understanding in regard to our proposals," Jelena Tabak, who heads the NUU association of restaurateurs, said after the meeting.

Marić recalled that a lower VAT rate was already in place in the tourism sector for accommodation, food and for the serving of food and that beverages were the only products for which VAT had not been reduced.

Commenting on the proposal to exclude labour costs from the base amount for the calculation of the VAT rate in the hospitality sector, the minister said that neither Croatia's nor the EU's tax systems recognised such a measure.

"In terms of taxation, labour costs are indeed recognised costs but in systems in which they should be recognised - the income and profit tax systems. We cannot mix direct taxes with indirect taxes such as VAT," he explained.

Marić recalled the government's measures to help the business sector, from lower taxes to the cancellation of individual contributions, as well as expanding the scope of nontaxable income, which, he said, had resulted in a rise in employment and wages, as evidenced by statistical data.

He recalled the government's job-keeping measures and coverage of fixed costs in the hospitality sector, stressing that data on fiscalisation showed that the hospitality sector had solid results and that the real peak of the tourist season was yet to come.

Dražen Biljan of the bar owners' association of the NUU Zagreb branch said that they were not happy that their proposals were not accepted and that lowering VAT on drinks would not cost the state too much, around HRK 400 million. It would, however, mean a lot for restaurant and bar owners, he said.

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ZAGREB, 27 July, 2021 - Economy Ministry officials on Tuesday presented contracts awarded as part of the HRK 326.3 million public call "Increasing Energy Efficiency and the Use of Renewables in Manufacturing Industries", with the total value of the projects to be implemented standing at HRK 672 million.

340 businesses applied to the call, and 28 - five micro and small businesses, six medium-size businesses and 17 big companies - were awarded money from the EU Competitiveness and Cohesion Fund.

Economy and Sustainable Development Minister Tomislav Ćorić said he expected the companies that were given grants to increase their energy efficiency as well as competitiveness as a result of lower energy consumption and increased production efficiency.

He noted that significant funds were envisaged for that purpose also under the National Recovery and Resilience Plan and that domestic businesses could expect new calls for applications by the end of this year and the beginning of 2022.

The approved grants must be invested in the next one to two years.

As a small, open economy, in the previous decades Croatia mostly exploited its development capacity in the services sector, including tourism, while now national plans and strategies should put special emphasis on manufacturing industries so that the country can catch up with EU standards, Ćorić said, adding that domestic producers could impact export as one of the key variables of the national economy.

"There will be more calls like this one in the period to come," he said.

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