Croatia’s industrial production posts second consecutive annual drop in April

Croatia’s industrial production posts second consecutive annual drop in April
By bne IntelliNews May 30, 2017

Croatia's working-day adjusted industrial output posted an annual decline of 0.6% in April after recording a revised decline of 0.1% in March, the statistics institute (DZS) announced on May 30.

Industrial production in Croatia registered annual increases for 25 consecutive months until March. However, problems related to the debt crisis at retail giant Agrokor seem to have started curbing industrial production growth in the last two months.

The European Commission said in its Spring 2017 Economic Forecast that industrial production in Croatia had deteriorated in Q1, particularly in the consumer goods segment, possibly due to the distressed situation at Agrokor. 

On a seasonally and working day-adjusted basis, industrial production contracted by 1.9% m/m in April, after growing by 0.5% m/m in March.

In January-April, working-day adjusted industrial production went up 1.3% y/y.

Output of consumer durables and non-durable consumer goods contracted in the first four months of 2017, while intermediate goods industry posted the highest annual growth of 5.4% compared to the other sub sectors, energy and capital goods.

Previously, the continuous growth in industrial output was largely supported by the recovery in both domestic and foreign demand. In 2016, industrial output grew 5% y/y, higher than the 2.6% annual growth recorded in 2015.

Industrial turnover grew 9.2% y/y in Q1. The biggest increase in industrial sales in the first quarter was posted by the energy sector where sales jumped 113% on the year due to rising oil prices.

Industrial sales on the domestic market rose by 6% y/y in the first three months of 2017, whereas sales abroad went up 16% compared to the first quarter of 2016.