Retail spending in Croatia has continued its upward trend, marking the 34th consecutive month of year-on-year growth, signaling ongoing resilience in the country’s economy.
According to a report published on Thursday by the Croatian Bureau of Statistics (DZS), retail trade turnover in January—based on calendar-adjusted data—declined 1.2 percent compared with December. However, when compared to January of the previous year, retail consumption increased by 3 percent.
Although the annual growth trend remains strong, the pace has slowed compared to the previous month, when retail sales expanded by 4.8 percent.
Consumer spending drives economic growth
A closer look at the data shows that sales of food, beverages, and tobacco products rose by 6.1 percent, while sales of non-food products increased by 5.4 percent. In contrast, sales of motor fuels and lubricants declined by 5.7 percent.
Since household consumption represents the largest component of gross domestic product (GDP), the continued growth in retail trade suggests that Croatia’s economy is likely to maintain stable expansion during the first quarter of the year.
Earlier data from the Croatian Bureau of Statistics also showed that Croatia’s GDP expanded by 3.6 percent year-on-year in the final quarter of last year, marking the 20th consecutive quarter of economic growth.
