Croatia: Record export despite pandemic

Croatia: Record export despite pandemic

Croatian producers have managed to deliver an excellent result in 2021’s first quarter, recording record export figures and surprising growth of 9.5 per cent, Croatian media report.

The ongoing coronavirus pandemic is continuing to influence almost all aspects of life and business, the global economy is suffering tremendously and in a truly unprecedented way. The Croatian economy, which relies heavily on tourism as it makes up a huge amount of the country’s GDP, has been far from immune from the negative trends caused by the measures introduced to try to prevent the spread of the novel virus.

Virus and the epidemiological measures, as well as the intermittent lockdowns, plague Croatian producers, particularly exporters, as the vast majority of other sectors across Croatia and Europe, but in 2021 they managed to bring some surprising and encouraging results which might well mean that things are finally going better.

According to Croatian media, in the first two months of 2021, observing the yearly level, Croatian exports were down 1.4 per cent (when looking at it from the perspective of the Croatian kuna) and 2.8 per cent in euros on an annual basis.

2021’s first quarter also saw a significantly more favourable ratio between the value of exports and imports, as the coverage of imports by exports improved significantly and amounted to 64.6 per cent. In the first quarter of last year, the ratio stood at a lesser 60.3 per cent.

The more favourable ratio is a direct result of slower growth in imports, which was 2.1 per cent higher in Croatian kuna and 0.6 per cent higher in euros. Since this is the first data without details on the structure to have been made available, there is no precise data on what contributed most to this promising export jump. It can only be established that growth also took place on the most important single EU market (7.3 per cent in euros), and to a somewhat stronger scale outside of the single market (9.2 per cent in euros).

In absolute numbers, in the first three months of 2021, the Croatian economy exported products worth 30.0 billion kuna, or 3.97 billion euro. At the same time, 46.48 billion kuna or 6.15 billion euros worth of goods were imported, which is a record result for that particular period.