ZAGREB, April 6, 2018 – Retail sales in Croatia in February 2018 increased 1.2% on the year and that is the 42nd consecutive month of growth, albeit at a significantly slower pace than in the previous month.
The Central Bureau of Statistics (DZS) on Friday published a report on retail trade turnover and according to working-day adjusted data. Retail sales in February dropped by 2.2% compared to January, but compared to February last year, they increased by 1.2%. That is significantly slower than in January 2018, when consumption grew 6.1% on the year, which was the fastest growth since August last year.
Even though consumption growth had slowed down in February, the record-setting positive trend continued, since the last year-on-year fall was recorded in August 2014. A 42-month streak of growth in consumption hasn’t been recorded since the DZS started keeping records of consumption indicators.
This trend was expected, considering changes to taxation regulations and tax breaks that entered into force at the beginning of the year, Raiffeisenbank Austria analysts said, commenting on the report. The analysts added that growing optimism, consumer confidence and sentiment indicate that the positive trend in retail will continue.
In the first two months of this year, retail trade grew by 3.6% on the year.
That is the fifth year in a row for consumption to grow. Retail turnover in 2017 increased by 4.7%, which was faster than in 2016.
The growth in retail at the start of the year is a sign that economic growth will continue, considering that personal consumption accounts for the largest portion of Gross Domestic Product.
