In September 2020 industrial production in Croatia fell by 1.1% year-on-year, decreasing for the 11th consecutive month, albeit more slowly than in August, when it dropped by 1.2%, according to the national statistical office (DZS).

On the month, industrial production in September went up by 1.9%.

Despite increasing month-on-month, industrial output in September continued to decrease, as it has been since November 2019, Raiffeisenbank Austria (RBA) analysts said.

Two out of five sectors saw a drop in output in September on the year, and the highest drop was of 9.2%, in the production of durable consumer goods.

The production of non-durable consumer good fell by 8.5%.

On the other hand, the production of capital good rose by 11.1%, and the production of intermediate goods went up by 0.8%. Energy production increased by 0.4%.

In the first nine months of 2020, industrial production dropped by 4.7% on the year.

Economy in recession

The drop in industrial production is a consequence of recession caused by the restrictive measures in the world and in Croatia due to the spread of coronavirus.

Because of the corona crisis, Croatia’s gross domestic product (GDP) dropped in Q2 by a record 15% year-on-year.