Croatia's work-day adjusted industrial production index fell 3.5% y/y in August after declining 4.1% the month before, statistics office data showed. This is a fifth consecutive decline of the index. In monthly terms, the seasonally–adjusted index increased by 0.9%.
The manufacturing sub-category of the index experienced an 8.6% y/y decline in Aug, while mining and quarrying increased 0.7% on the year and electricity, gas, steam and air conditioning supply jumped 22.4% y/y.
In Croatia's trade sector, tobacco production recorded the largest decline, shrinking 50.3% y/y in August. Production of wearing apparel, leather, wood and pharmaceuticals fell as well. The output of printing and textile sectors, on the other hand, increased in the same month.
Meanwhile, the extraction of crude petroleum and natural gas inched up 0.9% y/y in August, while other mining activities rose 15.8% y/y.
Industrial production accounts for around 25% of Croatia’s GDP and the latest economic data suggest that the country might find it more difficult to keep the economic decline below the 1% forecast made by its central bank and the European Commission. Similarly the government will most likely revise down its 0.7% GDP growth forecast for 2013 as it is too optimistic and is planning budget cuts to deal with high government debt.
Croatia’s economy contracted by 0.7% y/y in Q2 of 2013 following a 1.5% y/y drop in the first three months of the year, the statistics office has said.
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