Beer Sector Generates 1.8% of Croatia’s GDP

Total Croatia News

Positive trends in the brewing industry continue.

The beer industry contributes significantly to the strengthening of the Croatian economy, generating 1.8 percent of gross domestic product (GDP), directly and indirectly employing 23,522 workers, with productivity above the Croatian average, showed the results of the researched conducted by the Zagreb Economics Institute, reports Večernji List on October 26, 2017.

The study on the impact of the brewing industry on the Croatian economy was commissioned by the Croatian Chamber of Commerce (HGK) and done by the Institute in the period from April to June this year, in order to assess the overall impact which the beer sector had on the economy from 2010 to 2015.

Presenting the results of the study, the Institute’s research team member Marina Tkalec said that the beer production sector in 2015, directly and indirectly, created gross value added in the amount of 4.2 billion kunas, representing 1.8 percent of Croatian GDP. For each kuna directly created by the beer producing sector, another four kunas were indirectly created in the rest of the economy, she said.

Tkalec also stated that the brewing industry in 2015 paid 639 million kunas to the state budget in excises and that the entire value chain paid 2.8 billion kunas in taxes, representing 1.9 percent of the total budget revenues. The data show that on every tax and payroll contribution unit paid directly by the beer producers into the budget, almost five additional tax units were paid indirectly.

The study also showed that the beer sector, directly and indirectly, created 23,522 jobs, representing two percent of the total number of employed persons in Croatia in 2015. For each position in the industry, Tkalec said, another 12 to 13 jobs were indirectly created in the rest of the economy.

“The beer sector was growing even during the recession and is increasing the number of employees, suggesting its strong potential for generating economic activity in the country,” Tkalec said, adding that, according to the results of the study, “by productivity, the brewing industry is above the Croatian average.”

Božica Marković, the director of Agriculture, Food Industry and Forestry Department of the Croatian Chamber of Commerce, pointed out that positive trends in the beer sector were continuing. The beer industry recorded growth of three percent in the first eight months of this year compared to the same period last year. The sector also recorded a surplus in foreign trade, which in 2016 amounted to 17 million euros. Last year, beer exports reached 48.7 million euros, accounting for 2.8 percent of agricultural and food exports. The export of beers increased by 61 percent compared to 2012.

Pero Ivanković, the chairman of the Association of Beer Producers, said that the beer industry was robust, stable and prosperous, and that it was a prosperous sector which has been growing every year. Particular attention is given to the development of employees, the selection of quality management staff and to the socially responsible activities, Ivanković said, adding that Croatian beer industry contributed significantly to the strengthening of the economy.

Translated from Večernji List.


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