March 31, 2023 -  On Thursday, the Croatian government changed the decision on direct price control measures for specific food products in such a way that the highest retail price of UHT milk with 2.8 percent milk fat per liter has now been raised by 5 cents and the price it cannot exceed amounts to 1.03 euros.

"The Ministry of Agriculture has proposed that the price of UHT milk be increased by five cents, all in order to protect primary milk production and to limit trade margins to a maximum of ten percent," said Minister of Economy and Sustainable Development Davor Filipović, as reported by Poslovni.

As stated in the explanation that came with the government's decision, this was an amendment of the decision on direct price control measures for certain food products, i.e., increasing the upper price level of UHT milk 2.8 percent milk fat by 5 percent - from 0.98 euros/liter to 1.03 euros/liter. Also, the upper margin limit of ten percent for traders for UHT milk of 2.8 percent of milk fat has been introduced.

"Such a proposal continues to ensure an acceptable price for UHT milk with 2.8 percent milk fat, which is the type of milk most often consumed in Croatia. It also ensures a margin limit that does not put traders in an unfavorable position in the chain while preventing potential pressure to lower the purchase price", states the explanation.

It is also noted that the liquidity of agricultural holdings, along with the entire primary production, as well as the processing industry, are now in quite unfavorable production conditions, which is a result of market disturbances in the last three years. According to the document, this has been preserved mainly by national regular and intervention measures of financial support granted precisely because of significant market disruptions and challenging business conditions.

For more, make sure to check out our dedicated News section.

March the 14th, 2023 - Marko Boras Mandic, the President of Primorje-Gorski Kotar County's Assembly, took to social media with a very clear post titled ''Look how robbing us!'' in reference to no less than toilet paper.

As Poslovni Dnevnik writes, Marko Boras Mandic has been delving into the situation of price hikes across Croatia, which have occurred as a result of both inflation and Eurozone accession back at the very beginning of this year, and using one very basic household necessity as an example.

Marko Boras Mandic published photos of two rolls of toilet paper on Facebook, one of these rolls was bought in Italy and the other was purchased right here in Croatia. Both rolls in the photo have been weighed, the Italian one weighs 147 grams, and the Croatian one - only 69 grams. Marko Boras Mandic explained in his status what he considers to be a problem with this.

"On the left is toilet paper bought in Italy, on the right is toilet paper bought in Croatia. Their prices are equal, the Italian one is a little cheaper, but only very slightly. At first glance, they're the same price, about 4 euros for 10 rolls. But... it's not quite like that. The roll of Italian paper is much more compact and weighs 147g, while the Croatian roll weighs only 69g! So the Italian one is more than twice as heavy!

And then when you go to "unpack" the product right to the end, you come across another interesting thing. With the Croatian roll, you have exactly 120 pieces of toilet paper at your disposal, and with the Italian roll, exactly 352 pieces of toilet paper of the exact same dimensions! Let me translate - if you buy toilet paper in Italy, it will last exactly three times longer!! In other words, we're buying the same thing but it's three times more expensive.

I don't know if this post will manage to reach any portal for publication, but it would certainly be good if our regulatory agencies and consumer protection associations deal with this topic. When Croatian stores are having such enormous prices for food and household items, it would be nice if we at least knew exactly what we were getting for our money! And of course, we should know what level of quality it is! And until then, shopping will be being done in the direction of Trieste and Ilirska Bistrica.''

For more, make sure to check out our dedicated news section.

March the 14th, 2023 - Do we need to be worrying about the Croatian 2023 tourist season this summer as prices continue to rise? With even the faithful Germans saying that Croatia is becoming too expensive, there's room for improvement.

As Poslovni Dnevnik writes, there are currently around three and a half thousand guests staying in the wider Kvarner area, which is a very good number for this time of year. The announcements are good for spring and summer across nearby Istria as well.

However, there are more and more warnings that we have to change the trends within the Croatian tourism sector. Overcrowding is an issue nobody enjoys and which is increasing, the real estate business is booming, and the prices of both accommodation and services are rising. And it won't stop there...

Winter is coming to an end and this country's most faithful guests of all, the Germans and Austrians, are busy warming up after the cold. Owing to that, gorgeous little Opatija, a favourite of both the Germans and the Austrians, is never empty.

"We're happy that in just the first two months of this year we achieved even 40 percent more overnight stays than we did back during the record year of pre-pandemic 2019. But that's a trend where, for a decade or so now, we've been see an increase in the number of arrivals outside of the main summer season from year to year," stated Irena Persic Zivadinov, the director of the Kvarner Tourist Board.

Kvarner's many hotels have prepared various arrangements and packages aimed at attracting guests for the Croatian 2023 tourist season, but they're now more expensive, writes N1.

"Considering the input costs, of course the situation is very uncertain for the entire market. We're really trying to be flexible here, but we're also working in accordance with the rate of inflation on the entire price policy. In accordance with the rate of inflation, there will probably be an increase in prices, but again, we're doing our best to be fair,'' Ivan Sarajlic, the spokesman of a hotel group, stated.

Impressions from the largest tourist exchange which was recently held in the German capital city of Berlin are still settling in. The Germans traditionally love Croatia and have been among the country's most faithful and most frequent visitors of all for many years, but even they are raising their eyebrows at some of the prices nowadays.

"Now some other countries in Croatia's immediate neighbourhood are already seriously competing with us, such as Montenegro, which is fighting for Western tourists after losing Russian and Ukrainian tourists, and there is also Albania with its beautiful coast, which is very competitive both in terms of quality and values. The Germans are saying Croatia has become too expensive,'' warned tourist consultant Nedo Pinezic.

Both expensive and overcrowded, warned Istria County's prefect, as the Croatian 2023 tourist season rapidly approaches.

"I think that, when we talk about quantity, we've reached that certain maximum. Istria has 468,000 registered beds. If 200,000 of us live there and take into account the number of unregistered facilities among that, the question is to what number we can go? Has Istria exceeded its limit in this sense? I think it has,'' said Boris Miletic.

For more, make sure to check out our dedicated news section.

March the 11th, 2023 - The days of relatively cheap Croatian summer holidays are now gone. The introduction of the euro as the country's official currency this year and spiralling inflation have driven prices upwards, and it seems as if this trend isn't likely to alter much as we go forward.

As Poslovni Dnevnik writes, Croatian summer holidays down on the Adriatic coast could be more expensive than ever before this year, and it's already being announced that private accommodation prices will be 30 percent higher on average than before.

That means that an apartment that came at a cost of 60 euros per night last year in the peak of the summer season will be around 80 euros this year, reports Dnevnik.hr. For a ten-day stay on the Adriatic, you will now need to allocate around two hundred euros more for accommodation expenses alone. Private renters have even higher expectations for cash flowing in from the booking of Croatian summer holidays this year than they did last year.

Some property owners who rent to tourists are still waiting to set their prices until they see what will happen after March with the government's aid package related above all to the price of electricity and energy.

"For the past few years, we've been spending our Croatian summer holidays in the Istrian town of Rovinj for a minimum of three weeks. Each night during the peak season in 2022 cost us 60 euros. I asked for offers from renters for this year and the prices are abnormal, even with a longer stay. From 90 euros in a more remote location to 140 euros. We'll probably change our destination, but Dalmatia is not much better either. I looked at nearby Greece, where an entire house during the peak summer season is 150 euros," one interviewee told Dnevnik.hr.

"Given the overall situation, economic and socioeconomic, it would be realistic to increase accommodation prices by 15 to 20 percent, but if we take all the levies that have been increased for private renters into account; from sojourn tax to tourist membership fees and communal services in numerous destinations, the real price increase in the family/private accommodation sector stands at about 30 percent,'' explained Mirko Bulic from the Croatian Community of Family Accommodation Association for Dnevnik.hr.

This particular trend, he says, is for prices to rise in this type of accommodation at the global level by 15 to 25 percent.

"It won't really cause any turbulence for us, I hope that we'll even end up being overbooked and that we'll need to send some guests down to Albania and into some other neighbouring countries,'' added Bulic.

These higher prices don't really seem to have affected the bookings for Croatian summer holidays for this year so far. Moreover, bookings for this season are 10 to 15 percent better than they were last year at this time, and the two coronavirus-dominated years have also contributed to all this, because people want to travel and are willing to pay more to do so.

How might one get by cheaper when it comes to Croatian summer holidays this year? Experts advise local tourists to avoid using the main platforms and negotiate prices directly with the renters.

For more, check out our dedicated news section.

January 27, 2023 - Eurostat has published data on the food price increase in the EU, broken down by member state. Croatia can be compared with the average and other countries, which reveals how much and why/who caused food prices to rise in previous years and in quite a bit of detail.

As Index writes, food prices can be monitored in several ways. For simplicity of presentation, they compared Croatia with the EU average, neighbouring countries Slovenia, Hungary, and Italy, and Germany as the largest EU economy. Slovakia was also added as the EU country most similar to Croatia in terms of population and standards.

In addition to the overall price increase, data are also given by the type of food products. Readers can select the categories by clicking on the menu in their interactive tables. Tables with data on the increase in the prices of bread, meat, milk, cheese, eggs, oil, fat, fruit, vegetables, beer, and wine have been published. 

How much have food prices increased in stores?

The most important category of food price increase for citizens is the harmonized index of consumer prices, which is actually a measure of inflation and shows how the prices in stores paid by end customers, i.e. citizens, have changed. In December 2022, the food price in Croatia, according to the harmonized index of consumer prices, was higher by 19.7 percent compared to December 2021.

This is a higher price increase than in Italy, a little higher than the average of the EU and Slovenia, and at the level of Germany. In Slovakia, food became more expensive, but the absolute record holder is Hungary, where the price of food in stores was higher by 49.6 percent during December 2022 compared to December 2021.

Bread

Understandably, not all categories saw an equal price increase. The price of bread in Croatia increased much more than in Italy, Slovenia, and the EU average. Approximately the same increase was recorded in Slovakia, while Hungary, with an increase of 82.1 percent, is the absolute EU record holder. Interestingly, in October the price increase of imported bread in Croatia was 30.9 percent, far less than in Germany, Italy, Hungary and Slovenia, where the import prices of bread increased by about 50 percent.

Meat

Meat price increase in Croatia is at the level of the EU average (17 percent), more than in Italy, and less than in Germany and Slovenia. Slovakia and Hungary stand out with a particularly high price increase, of 30 and 40 percent. Along with the increase index of consumer prices, i.e. prices in stores, the increase of import prices of a product and the growth of producer prices can be monitored.

In November, producer prices of meat in Croatia increased the least of the observed countries and less than the EU average. But data for October show that import prices in Croatia increased the most of all countries except Hungary.

Looking at the types of meat, chicken stands out, whose price increase in Croatia (18.1 percent) is the lowest among the observed countries and below the EU average (23.5 percent).

Milk, cheese and eggs

The prices of milk, cheese and eggs in stores (consumer prices) in Croatia were higher than the EU average, but lower than in Germany and Slovakia. The price increase of 73.2 percent in Hungary compared to December 2021 is by far the highest in the EU (the second highest is in Lithuania and amounts to 47.4 percent).

Looking at categories, the price of fresh whole milk in Croatia has increased the least compared to the EU, although until August Croatia was the record holder for the increase in the price of this food. However, between August and December, the price dropped sharply, so Croatia ended the year with the lowest increase in the price of these foodstuffs among the observed countries. It is interesting that data from October for import prices of that product show the highest increase in Croatia, even though consumer prices have been falling sharply since August.

The increase of the price of eggs in Croatia is extremely high, by as much as 64.5 percent. This is less than in Slovakia and Hungary, but far above the EU average (30.2 percent). The increase in the prices of yogurt and cheese does not deviate that much from the EU average, although it is higher in Croatia.

Oils and fats

The prices of oils and fats grew the least in Croatia of the observed countries. Until June 2022, it was even higher than the EU average, but since then it has been sharply decreasing. Import prices recorded a significant growth during the year (33.6 percent), although they have been decreasing since June. Producer prices in Croatia increased much less than import prices, and in December they were only 5.5 percent higher than in the same month of 2021.

Fruit

The increase of fruit prices was on average weaker than the increase of other food products. In Croatia (9 percent) it is slightly higher than the EU average (8.1 percent). Interestingly, overall, since 2015, the price of fruit has increased by 17.2 percent in Croatia, 29.9 percent in the EU, and even 94.5 percent in Hungary. For Croatia, this is the lowest price increase since that year for all food categories.

Vegetables

The increase of vegetable prices in Croatia (8.8 percent) is the lowest among the observed countries and below the EU average (15 percent). Compared to 2015, these prices are 23.2 percent higher, and the record holder is Hungary with 117.9 percent higher prices in December 2022 compared to the average price of vegetables in 2015.

Fish and seafood

The prices of fish and seafood in Croatia grew more than the EU average, 17.7 percent versus 13.3 percent. Of the observed countries, the growth was higher only in Germany, and in Hungary it was so high (39.4 percent) that it belongs in its own class. The increase in import prices was higher than the increase in producer prices.

Beer

Considering other food products, the price of beer did not increase significantly. In Croatia, a growth of 10.7 percent was recorded, which mostly occurred in December. If it had not been for that sudden jump, the price increase would have been only 5.1 percent, the smallest of the observed countries. The record holder is Hungary again.

Wine

The increase in the price of wine in Croatia in 2022 was atypical, for most of the year it was higher than in Hungary. In December, price increase compared to the same month last year was 18.6 percent, which is a slowdown compared to November. Hungary did not slow down, so it overtook Croatia with a growth of 19.5 percent. The EU average is 7.6 percent.

Producer and import prices

In Croatia, the price increase of imported food was at 25.3 percent, less than the producer price, which grew by 17.1 percent. This means that the increase in prices results more from the increase in import prices than from the increase in the prices of domestic producers. The same applies to Italy and Slovenia.

Hungary has the opposite situation - the increase of producer prices in the country is higher than the increase of import prices. Although producer prices refer to the prices of domestic and foreign producers, import prices refer only to foreign countries. From this, it can be concluded which had a greater impact on the growth of consumer prices in stores.

In December, there was a noticeable slowdown in the price increase of most categories of food products. At the EU level, the food price index (HICP) fell from 18.3 to 18.2 percent, which may be a hint of the beginning of a new trend. In Croatia, the increase has been slowing down since the end of October, when increase compared to the same month last year was 20.5 percent, and in December 19.7 percent. This does not mean that prices are falling, but it is a signal of slowing increase.

For more, make sure to check out our dedicated News section.

January 11, 2023 - Since the euro was introduced as the official currency in Croatia, there has been a series of price comparisons of products in Croatia and other countries, especially Slovenia. Lidl Croatia explained to Večernji why the prices are different. They point out that the formation of prices in a country is influenced by numerous factors, from the amount of the VAT rate, excise duties, and product analysis costs to logistics costs and the like.

Index compared Lidl prices in Slovenia and Croatia in detail.

"In the case of comparing prices in Slovenian and Croatian Lidl, the VAT rate on food in Slovenia is 9.5 percent, while in Croatia, the rate is 5 percent for some products (bread, fresh meat, and fish, eggs, fruits, and vegetables, edible fats and oils, baby food, pads, and tampons, which make up about 10% of our total assortment), and the rest is 25 percent," they state, as reported on Index.

"Regarding the comparative account from both Lidls, which was published in several Croatian media, 8 out of 10 products from the said account from the Slovenian Lidl have a tax rate of 9.5 percent, and in Croatia, 25 percent. This is a difference of 15.5 percentage points. Furthermore, Croatia pays a return fee on PET packaging of 0.07 euros, which is reflected on products such as mineral water and juices," states Lidl.

Fuel price

They further note that gasoline and diesel are cheaper in Slovenia, which makes a difference in the logistics costs for the delivery of goods. At the same time, they note that Croatia is geographically significantly larger than Slovenia. "It is demanding in terms of transportation due to the specific geographical shape, and the logistics also include islands, which is an additional challenge," they state in the press release.

"Some of the factors that led to global disturbances are the prices of raw materials, the availability of goods, the rise in logistics prices, the rise in electricity and gas prices and general costs such as maintenance, the impact of the war in Ukraine and, consequently, high inflation. The retail prices of certain products rose in line with the growth of purchase prices and other factors that influenced movements in global markets, " they state.

"We would like to emphasize here that we did not blindly transfer the increase in the input prices of our suppliers to our customers but corrected the prices with extreme care and concern, precisely so that we would not allow our customers to feel the full weight of the inflationary pressure that appeared," it is further stated in Lidl Croatia's explanation.

They also claim that Lidl Croatia did not increase prices during the switch to the euro.

"Prices of products from Lidl's regular range have been converted from kuna to euros according to the rules of mathematical rounding (without unjustified price increases) in favor of the customer. Also, to confirm a transparent relationship with customers, Lidl has joined the Code of Ethics, which determines how business entities act for a reliable and transparent introduction of the euro to create trust and a safe environment for consumers. Within the scope of the inspections so far, no unjustified price increases have been found in Lidl Croatia," they said.

For more, make sure to check out our dedicated Lifestyle section.

August the 17th, 2022 - Just how will mystery shoppers work to protect Croatian consumers and their rights out in the field as we edge ever closer to Eurozone accession?

As Poslovni Dnevnik writes, although it was said that the application would be finished by now, that has unfortunately failed to happen, meaning that the mystery shoppers haven't yet gone out into action in the country's stores.

It was also explained how these mystery shoppers will monitor the entire process of price alterations as we approach Eurozone entry and work to protect Croatian consumers.

"Each mystery shopper will keep their eye on twenty different products, they'll be the exact same products every month being sold by the same retailers or service providers. It must be checked whether the price is stated in accordance with the law. For now, we're only listing prices in kuna, because the obligation to declare prices in both kuna and euros will only been mandatory as of September the 5th, 2022. Then, we'll start checking whether the price is expressed in kuna and euros, whether there's a fixed exchange rate being used, and whether or not it's being calculated correctly. Given that the prices must be expressed to two decimal places, we have to make sure that there's no rounding up of the figures going on,'' said the president of the Association for Consumer Protection.

She also said that it is to be assumed that the rounding up of prices will also occur in Croatia if it happened in Italy, Slovenia and Austria as well.

''Croatia isn't going to be an exception, given that the country even worse than those countries in terms of legal regulation. We'll probably have to cope with that too. Since there is a lot of talk about it, I expect that it won't occur on such a large scale, that we'll manage to control it, so traders will probably also be aware that they should show the correct prices. If they start rounding up, we'll report it," she warned.

Where should Croatian consumers exercise the most care? In all situations, the president of the aforementioned association believes.

"We expect that it will be very difficult for customers in the beginning. It will be especially difficult in the period from New Year to January the 14th, 2023, when it will be possible to pay in both currencies, and merchants must only return euros. It's there where problems will occur because people will pay for items in kuna and receive euros in return. We're warning people that they should react to any issues with that right there, before they move away from the cash register," she said.

She noted that Croatian consumers must pay attention to the fact that merchants and service providers have a price list with prices in kuna and euros available to them.

She assessed the reduction of VAT on food as a bad decision by the Croatian Government.

"The opposite has now happened, items haven't become cheaper, they've become significantly more expensive. If the government had limited the prices and used that money to subsidise retailers and producers, then consumers would have benefited," the president of the Association for Consumer Protection believes.

For more, make sure to check out our dedicated lifestyle section.

June the 16th, 2022 - Ongoing inflation is continuing to force Croatian price lists to alter more and more frequently, with some very simple services now significantly more expensive than they were this time last year.

As Poslovni Dnevnik writes, the increase in prices across all fields owing to inflation has particularly affected Croatian islanders, and even on the gorgeous Central Dalmatian island of Korcula, company owners had to adjust their business to the recent price increases, writes HRT. As costs increase, it's now questionable how altering Croatian price lists will affect the upcoming height of the summer tourist season.

New Croatian price lists - new measures. The recent price increases have greatly affected all of the island of Korcula's small business owners, and they've had to adjust their business to this new and rapidly changing situation.

“Some artisans and small business owners had to increase their prices, some had to lay off workers, some were thinking about it. Everything is difficult, materials have become more expensive, fuel has become more expensive, now electricity also has, and what's worse, we don't know how it's going to go on like this and to what extent it will continue,'' pointed out Mihovil Depolo, President of the Korcula-Lastovo Association of Craftsmen.

Most craftsmen from this particular island have changed their price lists in line with rising costs, meaning that their prices, in order for their businesses to survive, are higher almost all over.

"We were forced to raise our ice cream prices, and a scoop of ice cream went from 12 kuna to 15 kuna, maybe it's symbolic as it's a mere three kuna, but it means a lot to us because looking at the example of a litre of milk I need to make the ice cream, well... I can't find that for under nine kuna,'' said Korcula pastry chef Jagoda Milina.

"We've increased our prices a little, we haven't done it by much, ten kuna, so enough cover this increase in fuel prices because fuel has risen by 50 percent when compared to last year," said the president of the Korcula Barcarioli, Stipe Separovic. However, it seems that tourists are also aware of the situation, and aren't too bothered about the altering of Croatian price lists on the island.

"It's not extremely expensive, it's kind of in our country, in big centres it's always a little more expensive, but it isn't too expensive for us. It's okay,'' said Marius from Lithuania.

“I love the grocery stores here, I think the prices are fair, just like when we eat out,” added Jessica from Florida.

"It's similar to some larger cities, except that in restaurants I'd say that the prices may be a little higher, but let's say in stores it's similar, more or less," believes Aleksandar from Serbia.

The global coronavirus pandemic is now finally behind us and a thing of the past, but with new price increases, it seems that another uncertain summer tourist season awaits small business owners and artisans on the islands.

For more, check out our business section.

May the 17th, 2022 - Inflation is continuing to place proverbial vices in the pockets of Croatia's residents, with just about every possible item from fuel to lettuce at the market having seen considerable price hikes. One Split confectioner claims that they're more than aware that locals won't be able to afford their products, but that they ''need to survive somehow''.

The criticism of one Split confectioner has been loud, as their prices are deemed extortionate to the local Croatian pocket. They have been accused of catering only to the typically deeper pockets of foreign visitors, but they have defended themselves and challenged all those who have an issue with the prices to go ahead and try to open a shop of their own, so that they might feel on their own skin how difficult it is.

As Poslovni Dnevnik writes, recently, something as apparently mundane as the prices of ice cream in the very centre of Split was written about rather extensively. Those prices ranged from 10 to a maximum of 15 kuna, which is twice as much as it was seven years ago. Many wrote in their comments that such figures were conditioned by the increasingly challenging and difficult market, higher purchasing costs for ingredients, water and electricity, as well as high rental costs, emphasising that "those in the hospitality industry also need to try and survive".

Slobodna Dalmacija writes that in the meantime, three more confectioneries have opened in the centre of Split, and that one Split confectioner, they recorded the most expensive scoop of ice cream offered so far in the city under Marjan. From 13 kuna for a small portion and 18 kuna for a large portion in a cup with various toppings included.

As for ordinary scoops of ice cream, there's apparently a new record holder in Split as well. This is the Slovenian franchise Aroma, where you will pay 16 kuna for their refreshing pleasure made without any gluten, artificial flavourso or flavour enhancers.

"We're aware that our prices aren't going to be being paid by Croats. But, what can you do, tourists are ready to pay for it,'' one smiling saleswoman explained to the journalists from Slobodna Dalmacija.

It's now certain that the (over) inflated rental prices (from which a mere handful profit, and most citizens of Split simply can't afford, for example, a scoop of ice cream) dictate that you'll now spend almost 50 kuna for three scoops of ice cream, and that if this is a path they really want to go down, those in the catering and hospitality sector, and the likes of this Split confectioner, should settle for a winter period in which business turnover in ice cream parlors is almost non-existent.

For more, make sure to check out our business section.

May 14, 2022 - In the last week of April, the spending in Croatia was 37% higher than last year, attributing this trend to the consequences of rising prices and the creation of stocks.

How is it possible that in a situation of general uncertainty caused by global geopolitical tensions, as well as the consequences of the pandemic, Croatia is facing the phenomenon of an explosion of fiscal accounts? Jutarnji List reports that data from the Tax Administration of the Ministry of Finance show that from April 25 to May 1 this year, compared to the same period in 2021, the number of fiscal accounts increased by a very high 24 percent, while the total fiscal accounts increased by 37 percent.

It is interesting that in the activity of providing accommodation and food preparation in the same compared week, the number of bills increased by an enormous 88 percent, while the number of bills was as high as 167 percent. Does this mean that Croatian citizens and tourists suddenly spend a lot more than they spent last year, or is it something else that should not be fueled by unjustified and potentially dangerous optimism?

Last year, when the inflationary trend began, Jutarnji List's analysis warned that the faster growth of the total amount of issued invoices in relation to the number of issued invoices probably indicates an acceleration of price growth.

Given that this year's theory seems to have proved correct, the fact that the number of accounts grew by 24 percent and the total amount spent on these accounts by 37 percent means that inflation has made a very significant contribution to the growth of fiscal accounts. However, the overall increase in the number of fiscal accounts of 24 percent is so large that we are certainly witnessing a very significant increase in spending.

As the real tourist season has not yet started, the growth in the number of fiscal accounts is most likely due to the robust growth of domestic demand. Why Croatian citizens choose to spend extravagantly at an uncertain moment in world history is difficult to assess without more detailed statistical insights into what exactly they paid, but it may be an attempt to spend before possible deeper problems begin. But it may also be simply a matter of swollen consumer confidence, regardless of all potential security and economic threats, writes Jutarnji List journalist Gojko Drljaca.

For more, check out our business section.