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.

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