ZAGREB, May 2, 2018 – Prime Minister Andrej Plenković commented on Tuesday on the fourth industrial production decline in the past five months, saying the causes of the decline would be analysed but also underlining as important that these indicators do not affect the revenue side of the state budget.
Croatia’s industrial output shrank by 1.7% this March compared to March 2017, according to figures from the national statistical office (DZS) released on Monday. The country’s industrial production declined by 4.3% compared to February 2018, falling for the fourth time in the past five months as only February saw a rebound in output growth, by 3.3%.
The contraction was not expected by economic analysts. “I don’t think this is something exceptionally unusual, probably a big order or a big job that existed this time last year created this difference,” the prime minister said.
The Economy Ministry and the Finance Ministry will analyse the figures for March, Plenković said, adding that this could be related to the situation in the Petrokemija artificial fertiliser manufacturer or possibly the situation in the Uljanik shipbuilding company.
Croatia could raise its GDP and all macroeconomic indicators with a quality absorption of European funds which could give a true impetus to investment.
On the occasion of International Worker’s Day, Plenković said that the effects of the tax reform and other measures implemented by his government could be seen on salaries, saying that the average net pay in Croatia at this moment amounted to 6,200 kuna.
“This encourages us to work even more – both on increasing employment and on creating equal opportunities,” Plenković said, adding that education reform would contribute to that.
Asked to comment on the possibility of a grand coalition between his Croatian Democratic Union (HDZ) and the opposition’s Social Democrats (SDP), given that the rating of the Živi Zid party was growing, Plenković said: “We are in power, everyone else is in the opposition.”
