Croatia's retail sales down by real 0.4% y/y in October 2013

By bne IntelliNews December 5, 2013

Croatia's working-day adjusted retail sales fell by a real 0.4% y/y in October 2013 after declining 0.5% y/y a month earlier, the statistics office said on Dec 4.

In seasonally-adjusted terms, retail sales decreased by a real 0.5% m/m in October after falling 2.2% m/m in September. The statistics office will provide a breakdown by categories later in December.

The negative performance is somewhat milder than the anticipated 1.5% y/y drop by a group of macroeconomic analysts, polled by news agency HINA and cited by daily Poslovni Dnevnik. The analysts expect that retail sales will continue to shrink, considering the falling employment, real wages and demand for bank credits by households, and with the end of the summer tourism season.

The end of the tourism season already marked the turn to rising unemployment and falling employment in September, which together with stagnating wages will restrain consumption. The registered unemployment rate for October 2013 was 20.3%, up from September's 19.1%.

The latest retail trade data are also one the first indications that the GDP might drop for a ninth consecutive quarter in Q4 after shrinking by a real 0.6% y/y in Q3.

Related Articles

Croatia reportedly receives just one bid to lease capacity at planned LNG terminal

LNG Hrvatska has reportedly received just one binding offer to lease capacity at the planned planned liquefied natural gas (LNG) terminal on the Croatian island of Krk, unnamed sources ... more

London court to consider extradition of Agrokor founder

The owner of Croatia’s heavily indebted food and retail giant Agrokor, Ivica Todoric, will appear in a London court on April 10 in connection with Croatia’s extradition request, Total Croatia ... more

Croatia greenlights €1.8bn debt restructuring of road management companies

The Croatian government decided on March 29 to offer state guarantees for loans worth €1.8bn that road management firms will take out to refinance their debt, and announced further financial ... more