Retail sales in Croatia in June 2019 increased by 6.3% on the month and by 6.1% on the year, their highest year-on-year increase since February when they jumped by 8.7%, according to figures released by the National Bureau of Statistics (DZS) on Tuesday.

Retail sales thus returned to positive territory after decreasing by 2% in May year on year, which was their first drop after rising for 56 straight months.

Compared with June 2018, retail sales of food, beverages and tobacco products increased by 5.4%, while sales of non-food products jumped by 8.6%.

In the first half of 2019, compared with the same period of 2018, retail sales rose by 4.4%.

“Looking at the second quarter of this year alone, when retail trade increased by 3% year on year, a slight slowdown can be observed. However, it is quite certain that retail trade reflects and confirms that personal consumption will make the greatest contribution to GDP growth. As a result of positive trends on the labour market, growing credit activity and positive expectations, which will also be encouraged by planned tax reliefs, retail trade is expected to grow in the months ahead, albeit at somewhat more modest rates,” analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.