Analysts of the central bank say the rise in deficit is mostly due to revenue spending, increased foreign trade imbalance, and stagnating net revenues from tourist services.
Revenue spending in the first half of this year totalled 1.1 billion euros, which is 46.6 percent more than at the same time last year.
Almost half of the amount, or 501.1 million euros, referred to the payment of retained company profit which in most cases is actually re-invested, and is recorded in the balance of payments as direct investment revenue. That amount in the first half of this year was two times higher than in the first half of last year (248.8 million).
Revenue income increased by 11.3 percent, amounting to 293.9 million euros at the end of the first half of this year.
Increased foreign trade imbalance was the result of an increase in the commodities account deficit (3.6 billion, 6.7 percent more than in the first half of last year), and a slight surplus in the services account (amounting to 1.1 billion, a 5.4 percent drop).
Tourist revenue dropped by one percent to 1.5 billion euros. At the same time, tourist expenses went down by 6.1 percent to 307 million euros, resulting in a 0.4 percent surplus (1.2 billion euros) in the tourism account.
According to estimates presented in mid-September by HNB Governor Zeljko Rohatinski, the balance-of-payments deficit this year will be around six percent of GDP, an increase in relation to last year's deficit of 5.2 percent.
HNB data show that the balance of the account of capital and financial transactions, not including foreign reserves, totalled 3.1 billion euros in the first half of this year, which is almost twice as much as at the same time last year.
HNB analysts say that developments in the account of capital and financial transactions in the first six months were marked by an increase in foreign direct investments in Croatia, as well as by significant changes in the account of portfolio investments, and a drop in foreign deposits by domestic business banks and an increase in net foreign sources of funding, mostly loans.