As Poslovni Dnevnik writes, recently, there have been signs of inflation finally stabilising after a certain drop in electricity and gas prices was duly noted, but despite that, in general prices are still high, and Croatian living standards are falling, which is why Croatian pension and wage increases are now more necessary than ever.
These are just some of the conclusions reached as part of the recently held “Eurostands – Perspectives and challenges” in the City of Zagreb. The head of the Independent Croatian Trade Unions, Kresimir Sever, reiterated that subjective inflation is still being very much felt by most of the country’s households and is significantly higher than official statistics. He said because of that, Croatian pension and wage growth is necessary. On the other hand, the chief economist of the Croatian Association of Employers (HUP), Hrvoje Stojic, said that HUP members have seen their employee salaries rase above the national inflation level.
Stojic also noted that the wider Eurozone’s economy will experience a certain strong slowdown throughout 2023, during which there will be a “cooling” of aggregate demand, but he added that inflation could be up to two percentage points lower compared to the estimates provided back at the end of 2022.
He believes that due to the unusually mild winter we’ve all been experiencing, the whole of Europe could avoid dipping into the expected recession in 2023, but also that there is an option to simply “postpone” it to the second half of this year, or even until next year. Professor Marijana Ivanov of the Faculty of Economics warned that inflation reduces the real value of everything we own, and that we need to keep paying attention to the trends.
However, it is positive that there are still no risks of unemployment growth in the Croatian economy, but the general standard of living in slipping.
”Croatian living standards are decreasing, but somehow we’re managing despite all of the current challenges,” she concluded.
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