Embassy of India
Zagreb
No. ZAG/COM/201/2/2010 Dated: 12 August 2010
Economic and Commercial Report for the month of July 2010
GDP/Economy
According to the Croatian National Bank (HNB), country’s GDPin 2009 decreasedby 5.8%year-on-year to€45.4billion followed by afurther declineof 2.5% year-on-year in the first quarter of 2010. The economic growth in 2008 was 2.4%.
2.The World Bank, on 22 July, revised downwards Croatia’s economic forecast for 2010 from zero growth to a decline of 1%. It urged Government to decisively implement the economic recovery programme and control public debt. The official figures for State finances in Q2 2010, released on 2 July, showed a drop in revenue of 1.6% year-on-year to Kuna 51.9 billion (€ 7.2 billion), and an increase in expenditure by 0.6% year-on-year to Kuna 59.6 billion (€ 8.3 billion).
3.The Dun and Bradstreet (D&B) credit rating agency in its report, issued on 1 July, retained Croatia’s credit rating at DB3d, which classifies it among countries where there is a slight risk of doing business.
4.The HNB intervened in the foreign exchange market on 9 July buying €119.4 million to keep the Kuna stable. This was the 3rd intervention during this year.
5.According to HNB, foreign debt at the end of April amounted to € 42.8 billion, which was €276 million less in comparison with December 2009. The drop was due to falling obligations of banks to foreign creditors.
Inflation & Unemployment
6.According to the Croatian Central Bureau of Statistics, inflation in June was 0.1% lower than in May, but 0.7% higher as compared to June 2009. The decrease was mostly influenced by the decrease in the prices of clothing and footwear. Unemployment in June was 16.6%, down 0.6% month-on-month but an increase of 2.6% year-on-year. This was the lowest rate since November 2009 when it was 16.1%. Average net wage in May 2010 was Kuna 5,277 (US$ 917)
Trade & Industry
7.During the period H1 2010, Croatian exports increased by 10.1% yearonyear to Kuna 30.6 billion (€ 4.2 billion) and imports declined by 7.7% yearon-year to Kuna 52.2 billion (€7.2 billion). The coverage of imports by exports was 58.6%. Total trade during the period Jan–Jun 2010 compared with same period in the previous year and balance of trade during the last year were:
Total Trade during period January-June 2009(bln Euro) / Total Trade during period January-June 2010
(bln Euro) / Rate of growth compared to same period in 2009 / Total imports during 2009
(bln Euro) / Total exports during 2009
(bln Euro) / Balance of Trade during 2009& coverage of imports by exports
(bln Euro)
11.41 / 11.39 / (-)0.19% / 15.22 / 7.53 / (-)7.69;
49.5%
(Source : Central Croatian Bureau of Statistics)
8.The decrease in industrial production in June was 2.7% month-on-month and 4% year-on-year. Energy production in June rose by 12.12%, while all other production sectors recorded declines on the annual level. The production of capital products dropped by 7.8%, intermediary products fell by 7.4%, non-durable consumer goodsdeclined by 4.5% and durable goods by 1.9%.
Tourism
9.Tourism Minister Damir Bajs said, on 22 July, that an amount of Kuna 34 million (€ 4.7 million) would be spent on on-line tourism promotion during the year. During the period January-May 2010, the number of tourists decreased by 3.2% year-on-year to 1.76 million and the number of tourist nights by 0.1% year-on-year to 5.44 million.
Joint Croatia, Serbia and Slovenia Railway Transport Company
10.Croatia, Serbia and Slovenia signed in Belgrade, on 30 July, a declarationto form a new joint company,with headquarters in Ljubljana, to get faster transport of goods in the panEuropean transport Corridor X (Germany to Turkey).
Croatian Chamber of Commerce opens Branch Office in Afghanistan
11.The Croatian Chamber of Commerce (HGK) opened representative office in Kabul on 12 July. The Chamber signed a Partnership Agreement with the Afghanistan Chamber of Commerce and Industries. Croatia is one of the seven countries licensed to participate in tenders in Afghanistan (which include India). A Croatian-Afghan Economic Forum was also held in which 11 Croatian companies including Agencija Alan (dealing in defence equipment), Birotehna (office equipment), Dalekovod (civil engineering) DOK-ING (robotics), Hittner (agricultural machines), Instrumentaria (medical equipment), Jacquard (fabric weaving machines), Podravaka (food), Ventilator grupa (thermal and ventilation equipment), and HCR-CTRO (demining) participated. Bilateral trade in 2009 amounted to US$ 5.8 million including Croatia's exports valued at US$ 5.7 million.
EBRD approves € 8 million loan for extension of Dubrovnik Port
12.The European Bank for Reconstruction and Development approved, on 28 July, a € 8 million loan for extension of Dubrovnik’s Gruz Port, to enable it to accommodate large cruise ships to boost tourism.
Croatia-India Bilateral Trade
(In million)
Year / 2006 / 2007 / 2008 / 2009 / 2010Jan-Jun
Croatia’s Exports
(% change y-o-y)
(% change y-o-y) / US$ 3.76
(22.9%) / US$ 7.6
(100%) / US$ 10.04
(32.2%) / US$ 32.43
(222.8%) / € 3.55
(-13.2%)
Croatia’s Imports
(% change y-o-y) / US$ 79.16
(35.0%) / US$ 108.37
(37.5%) / US$ 136.99
(26.4%) / US$ 124.55
(- 9.1%) / € 46.77
(2.9%)
Total Trade
(% change y-o-y) / US$ 82.92
(34.4%) / US$ 115.97
(40.3%) / US$ 147.03
(26.8%) / US$ 156.98
(6.8%) / € 50.31
(1.6%)
(Source: Croatian Central Bureau of Statistics)
Trade Enquiries handled by the Embassy during the month of July 2010
FROM CROATIA: 2 (details enclosed)
FROM INDIA: 8
(S.C. Khurana)
Second Secretary(HOC)
Distribution : As per standard list
Embassy of India
Zagreb
Trade Enquiries received from Croatian companies in July 2010
CompanyCommodities
Promo Futura d.o.o.-T-shirts and Polo shirts
J. Zerjavica 6
10000 Zagreb
Tel: +385 (0)1 64 04 901
Fax:+385 (0)1 64 04 902
Mob: +385 91 66 33 600
E-mail:
Contact : Mr. Sanjin Kolar
Matex d.o.o.-Garments
Cvjetna bb
40 000 Cakovec
Tel: +385 40 329 072
Fax: +385 40 329 073
Mob: +385 98 241 091
E-mail:
Web:
Contact : Mr. Mladen Madaric
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