Industrial production in Croatia grew by 4.7% year-on-year and by 9.6% from the previous month. This is the first growth in industrial production since July of 2018 following four years of continuous growth. This is also the biggest annual rate of growth since the beginning of 2017.
According to analysts from Raiffeisenbank Austria production of intermediate products in January grew by 10.4% on an annual basis, while the production of non-durable consumer goods jumped by 10.1%. However, energy production grew only slightly, at 1.4%. Production of durable consumer goods fell by 5.3% when compared to January of last year, while capital goods production slipped by 4.5%.
However, in spite of solid growth at the beginning of the year, RBA analysts do not feel that the highest rate of growth since January of 2017 represents a significant recovery in industrial output this year. They added that when assessing future trends, it is important to take into account the slowdown of those economies Croatia’s most important foreign trade partners.
RBA analysts concluded that they do not expect industrial production to boom in 2019, but that they are confident of a modest rate of recovery.