EUR 2.3 Billion Current Account Surplus in 3rd Quarter

Zagreb, 9.1.2006.

Mostly due to the income from tourism, Croatia noticed a EUR 2.26 billion current account surplus in the balance in payments realized in the third quarter of 2005. This shows a 13.8% increase (EUR 274 million), as compared to the same period in 2004. The data is based on the latest report provided by the Croatian National Bank.

The income from tourism for the mentioned period was quite high, counting EUR 4.1 billion, i.e. plus by 12.3 % as compared to the same period in 2004.
Other services presenting positive results for the third quarter in 2005 are air and maritime transport.

At the same time, continued the growing misbalance in the area of foreign export. The positive results achieved in the third quarter did not manage to 'cover' the negative results of the first six months in 2005. The first three quarters in 2005 registered a cumulative current account deficit in the amount of EUR 418 million. In 2004 the same period showed a deficit of EUR 119.5 million.

Besides a 10.2% growth in goods export and an 11.5% growth in goods import, the negative balance of foreign goods exchange in the first nine months of 2005 was increased by 14.5 % on an annual level.

The realized export of goods in 2005 (value of USD 6.5 billion), slowed down as compared to the same period in 2004 when the annual growth rate totaled 21.5 %.

This slowing down process is mainly the result of a decreased export of ships. According to financial analysts this loss should be partly consolidated by a more successful export of ships in the last three months in 2005.

The import of goods (USD 13.7 billion in first nine month of 2005) marks a point increase of 1.7 % as compared to the same period in 2004. The main factor for this total import growth is the strong increase of oil prices. (Hina)