Croatia's working day adjusted retail sales rose by 1.4 y/y in real terms December, slowing from 5.7% y/y in November, according to data from the statistics bureau released on January 30.
Croatian retail sales have been increasing for 40 consecutive months, supported by the strengthening of the kuna, seasonal employment and tax cuts. The growth has also been supported by the good tourism season.
In seasonally and working day adjusted terms, retail sales were down by a real 0.5% m/m in December.
In nominal terms (seasonally and working-day adjusted indices), Croatian retail sales increased by 3.2% y/y and fell by 0.6% on a monthly basis.
In the whole 2017, retail sales rose by 4.7% in real terms (working-day adjusted) compared to the previous year.
Struggling Agrokor’s subsidiary Konzum, Plodine, Kaufland, Lidl and Spar Hrvatska are the main retailers in the Adriatic country.
Household consumption is expected to remain strong this year hanks to employment growth, and rising wages.