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Crisis´ effects on Croatia similar to other regional neighbours
Croatian Times
Croatia has fared neither better nor worse than its regional neighbors during the crisis years, a look at statistics shows.
The net salaries in Croatia last year and in the first half of this have stagnated or grew minimally, as was the case in neighboring Bosnia and Herzegovina and Slovenia.
In Croatia and Bosnia salaries have grown by about 20 Euros since last May, 50 Euros in Slovenia and Montenegro, and 65 Euros in Macedonia. The average net salaries fell in Serbia (minus 55 Euros), Hungary (minus 14) and Romania (minus six) in the same period.
Serbia, Macedonia and Romania differ from Croatia in that they have decided to weather the crisis with the help of the IMF. One of the conditions for the institution’s loans are a 2-year freeze on pensions and public sector salaries, or their reduction if the freeze was not sufficient. The countries hope that these measures will have positive returns in the post-recession period, with lower labour costs being attractive for foreign investors.
Although stagnated, Croatian salaries held second place in the region, behind Slovenian. Croatian GDP per capita is almost the same as in Hungary, while the salaries in the country are significantly higher than those in Hungary.
At the same time the Eurostat data of food, drink and tobacco prices show that Croatia is almost as expensive as Slovenia, with its prices close to European Union averages (plus/minus 10 per cent, except for tobacco).
In other countries in the region, the prices of food, drinks and tobacco follow the level of average net salaries - where salaries are lower the level of prices is lower. In Serbia, Macedonia and Romania where net salaries are the lowest, the prices are almost a third of the European average.
Tag cloud prices salaries Slovenia Macedonia Euros Bosnia tobacco positive stagnated investors Croatia Serbia Hungary held regional European Romania food capita crisis
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