The available monthly indicators suggest that Croatia’s real gross domestic product (GDP) growth slowed in the fourth quarter of 2019, while the labor market continued to see favorable trends, including increased employment and wages and a fall in unemployment, the Croatian National Bank (HNB) Council said a statement.
Inflation picked up from 0.7% in November to 1.4% in December, mostly due to food prices, notably a strong increase in pork prices, and oil prices. Financing costs mainly continued to decrease as a result of the accommodative monetary policy.
The annual rise in bank loans accelerated to 4.2% at the end of 2019 on the back of the rise in household and corporate loans.
At the same time, the annual rise in loans to non-financial companies was mostly due to the fading of the negative effect of the activation of state guarantees for shipyards in late 2018.