Consumption in April up for 20th consecutive month

Retail sales in Croatia in April this year grew by 3.2% on the year, which is a lower growth rate than in the previous month, however, April was the 20th consecutive month to see an increase in consumption.

The national statistical office on Thursday published a preliminary estimate showing that according to working-day adjusted data, retail sales in April grew 0.7% in nominal terms and 3.2% in real terms compared to the same month of 2015.

This is slower growth than a month ago, when consumption grew by 3.5% on the year, and slower than expected.

Four economic analysts polled by Hina had predicted an average increase in consumption of 3.7%. Their estimates ranged from 2.7% to 4.5%.

Stronger consumption is attributed to an increase in salaries dating back to early 2015, when income tax changes were introduced.

According to figures from the national statistical office, the average net monthly salary in corporate bodies in the January-March period this year totalled HRK 5,673, which is a 3.4% increase in real terms compared to the same period last year.

"Indicators of consumer confidence continued improving in April at positive annual rates that started in October 2014," Raiffeisenbank analysts said.

April is also the first month this year to see an increase in employment. According to official statistics, the number of employed persons in April was by 1.3% or around 17,100 persons higher compared to March.

The data published today show that consumption growth continued at the start of the second quarter, which heralds further economic growth.

With an increase of 3.1%, personal consumption was one of the main drivers of faster GDP growth in the first quarter as against a 2.7% increase in the same period of 2015.

Consumption is expected to continue growing with the approach of the peak tourist season and seasonal employment.

(Text: Hina)

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