As Poslovni Dnevnik writes, Croatian economic expectations worsened during the month of May 2022 as a wave of pessimism among consumers in the face of high ongoing inflation outweighed improved retail sentiment, a European Commission (EC) report found.
The Economic Climate Index (ESI) in the Republic if Croatia fell by 0.8 points during the month of May compared to the revised value we could read about in April, amounting to 110.1 points.
The strongest deterioration last month was the general feeling and sentiments among the country’s consumers, whose index fell 3.4 points from April, sliding below the long-term average of the past twenty years.
Croatian economic expectations in the service and construction sectors, whose indices fell by 1.4 and 0.6 points, were also somewhat dampened. Retail managers showed a certain degree of optimism, as was expressed in the jump of the index by as much as 6.4 points. Expectations in the industry, whose index rose by half a point, also improved slightly.
At the same time, business leaders are signaling a decrease in the demand for labour, which was reflected in the fall of the index by 3.3 points. According to their perception, the uncertainty was alleviated compared to the month of April, despite ongoing inflation, and the rise in energy prices and problems in supply chains, seeing the EUI index fall by 1.3 points.
At the European Union (EU) level, the economic climate index fell by half a point in May when compared to April, while in the Eurozone it remained almost unchanged.
This occurred despite the fact that the countries using the single European currency are all facing the exact same struggles as Croatia in regard to inflation, although the currency offers a form of safety net Croatia won’t be able to enjoy until its own accession to the Eurozone in early 2023.
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