Continued growth for the Croatian economy.
In November, industrial production in Croatia grew by 2.7 percent year on year, which was its 10th consecutive month of growth, but more slowly than the month before. State Bureau of Statistics (DZS) announced on Tuesday that the industrial production, according to seasonally adjusted data, increased by 2.7 percent in comparison with November last year. That was slower growth than a month ago, when production rose by 6.4 percent, which was the biggest increase year on year since May 2007, reports Poslovni.hr on December 29, 2015.
However, this was slower growth than expected. Four macroeconomists who participated in the survey by Hina estimated on average that in November the industrial production would grow by 3.5 percent compared to the same month last year. Their growth estimates were in the range from 2.5 to 4.5 percent.
Nevertheless, in November the growth of industry continued for 10th consecutive month, which not happened since 2007, two years before the six-year recession began. “The growth is largely supported by the recovery of foreign demand and the fall in reserves in the previous period”, the analysts of Raiffeisenbank Austria said in their review of the DZS report.
The highest growth, by 8.1 percent year on year, was recorded in the production of intermediate goods, followed by growth of 7.9 percent in the production of capital goods. On the other hand, the largest decrease, by 6.5 percent, was recorded in the production of durable consumer goods, while the energy output in November was 4.5 percent lower than in the same month last year.
This year will be the second consecutive year of industrial production growth in Croatia. Last year, the industry strengthened by 1.3 percent compared to 2013, which was its first growth year on year after five years of continuous decline. “The continuation of the growth of industrial production in the last quarter will certainly make a positive contribution to overall economic growth, which was recorded in the previous quarters as well”, the RBA analysts concluded.
