One of the reasons is the Agrokor crisis.
Industrial production in Croatia grew by 2.5 percent in July compared to the same month last month, which was lower than a month earlier, but a positive trend has continued, according to data released by the Central Bureau of Statistics on Friday, reports Poslovni.hr on September 1, 2017.
This is the third consecutive month that the industrial output was growing, after having returned to a positive trend following a mild fall in April due to the crisis triggered by Agrokor.
Prior to the short fall in April, the industrial production grew for 26 months in a row.
“The volume of industrial production continued with favourable trends in July. With the exception of a slight negative annual growth rate in April, it has continued the trend of positive rates which started in February 2015,” said the analysts of the Raiffeisenbank Austria (RBA) in their review of the report issued by the Central Bureau of Statistics. However, in July, the production output grew slower than in June, when it increased by 4 percent.
In July, the best results were posted by the production of nondurable consumer goods and intermediate products, which grew by 6.0 percent year-on-year. Production of durable consumer goods rose by 4.4 percent.
On the other hand, energy production fell by 4.4 percent compared to July last year, while capital goods production fell by 3.2 percent.
In the first seven months of this year, industrial production increased by 2.5 percent compared to the same period last year.
“In the coming months, we expect the continued growth of industrial production which will be supported by foreign and domestic demand,” concluded the RBA analysts.
If the industrial output were to grow for the whole of 2017, that would be the fourth year in a row of industry growth. In 2016, the industrial production increased by 5.0 percent, considerably faster than in the previous years.
Translated from Poslovni.hr.
