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

Raiffeisen to file lawsuit against new Croatian banking law

Austria's Raiffeisen Bank is preparing to file a complaint at the Croatian constitutional court later in July against a recent law that aims to declare thousands of its loans to Croatians void, ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Croatian central bank intervenes again to alleviate kuna’s appreciation

Croatia's central bank (HNB) purchased €101.5mn on the foreign exchange market on July 14 at an average kuna/euro rate of 7.4210 from local banks in order to alleviate the appreciation of the local ... more

Dismiss