In the first six months of the year, Croatia recorded a mild growth in industrial production of 1.4% with a real increase in retail sales of 2.1% and a significant slowing down of the fall in construction activities compared to the year before. A significant growth in the value of commodity exports of 13% and an increase in the number of tourist stays of 6.2% have also been recorded in H1.
The HGK notes, however, that public and foreign debt continued to grow and that despite a fall in the number of the jobless in June, the number of the employed continued to fall on the year while credit activities by commercial banks continued to diminish. Investments are expected to grow slightly, but they will continue to be far below the pre-crisis level and public finances continue to be burdened by a high budget deficit, it said.
The HGK recalls that the decrease in unemployment was slower than last year and that unemployment is still 17% higher than it was in the period prior to the crisis in 2008.
After a drop of 0.06% in Q4 2014 compared with Q3 that year, Croatia's Gross Domestic Product (GDP) in Q1 of 2015 grew by 0.01% compared to Q4 2014.
"As there have not been two consecutive quarters showing growth, technically Croatia's economy has still not come out of recession," the HGK's Zvonimir Savic said.