- Published: 03.09.2015.
Deputy Prime Minister Grcic: Continuation of positive trends in Croatia's economy
Regional Development and European Union Funds Minister Branko Grcic said that the data confirmed that Croatia was on the rise. "That's the highest growth rate since the beginning of the crisis, way back in 2008. That confirms our claims that Croatia is growing," said Grcic.
Indicators of the strong growth in consumption and industrial production in July show a continuation of positive trends in Croatia's economy after it had grown by 1 percent in the second quarter, and analysts have upgraded their estimates for the entire year while ministers underscore that the positive trends are due to the government's efforts.
The State Bureau of Statistics (DZS) on Thursday released its first estimates according to which retail sales in July had grown by 4.5% in real terms compared with the same month last year. That is the greatest jump in retail in almost eight years and the 12th consecutive month of growth which hasn't been recorded since 2007.
DZS also reported that working day adjusted industrial production in July grew by 3.9% year on year. This was the sixth consecutive month that production had grown and that growth was at an accelerated rate compared with the preceding month when it strengthened by 1.6% on the year.
In the first seven months of this year, industrial production was 1.8% higher y-on-y.
Commenting on the positive trend in industry, he highlighted the growth in capital production which he considers to be a good sign indicating growing investment activities.
"All components of Gross Domestic Product (GDP) are continuing to grow, two components in particular are significant, industry and trade, considering that they make up 40% of GDP," he said after a cabinet meeting. He added that he expected good results in Q3 and on through the year.
Asked to comment on a recent statement by President Kolinda Grabar-Kitarovic that this growth did not have too much to do with the government, Grcic said that entrepreneurs had contributed to this growth through investments and job creation as did government measures.
"The government has been implementing concrete measures for a few years which have directly revived the economy concerning infrastructure, putting shipbuilding on its feet and assisting investments," Grcic added. He mentioned taxation amendments which have resulted in an increase in salaries of 2.3% since the start of the year and a growth of 4.5% in June alone, which has led to higher personal consumption.
Grcic underscored that faster absorption of European funds in the first half of the year by 1.8 billion kuna on the year had led to a growth of 6% in investments.
Economy Minister Ivan Vrdoljak said that the positive results were the result of the government's efforts over the past three years to boost industry and of the adoption of an industrial strategy.
(Text: Hina)
(Text: Hina)