Retail turnover in Croatia in July 2010 went up 0.7 per cent on the year in real terms, stopping a 21-month decline, the Central Bureau of Statistics said on Tuesday.
In nominal terms, retail turnover was up 1 per cent year on year.
The growth in spending is a positive surprise and is due to the very good tourist season, the positive psychological effect of the revocation of emergency tax, and the base effect, namely the steep decline of retail turnover in July 2009, said Zrinka Zivkovic-Matijevic, economic research director at Raiffaisen Consulting.
She does not believe that the spending structure has changed significantly and expects more detailed data to show an increase in the sale of food and drink, but not durables and luxury goods.
The seasonal rise in employment also had a positive effect on spending in July, but unemployment is expected to grow again in the autumn, which might curb spending, she said, adding this year saw rational spending and that she anticipated a 3 per cent decline in retail turnover for the entire year.
