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Lending continues to increase, central bank says

Author: Hari Alfeo

ZAGREB, June 13 (Hina) - The first quarter of 2018 saw a very mild real GDP growth in comparison with the end of 2017, while monthly statistics for the start of Q2 point to intensified economic activity and that lending continued to increase, the Croatian National Bank (HNB) said on Wednesday.

The HNB Council discussed recent economic and monetary trends, and adopted a report on the financial state of affairs, price stability and the implementation of monetary policy measures in the second half of 2017.

The start of Q2 also saw a continuation of employment growth and of unemployment decrease, the press release said, adding that the annual inflation rate went up from 1.1% in March to 1.3% in April, mainly due to higher oil product prices.

The HNB continued to implement an expansionary monetary policy, maintaining a very high liquidity of the domestic financial market. Lending growth continued to accelerate, to 3.2% annually, while interest rates on newly-approved loans were stable on average, the press release said.

The domestic sectors' net foreign debt in Q1 2018 went up the same as in Q 1 2017.

(Hina) ha

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