Thirty-four per cent of Croatians have noticed an improvement in their financial situation, although inflation is still a major problem. This is according to a survey by Mastercard, in which respondents state that their average monthly income is €1,035.

“Compared to last year, the perception of one’s financial situation in Croatia has improved significantly. Twenty-four per cent of respondents believe that their financial situation is worse than a year ago, which is a decrease of 10 percentage points compared to 2023. However, 34% estimate that their financial situation is better, which is an improvement of seven percentage points compared to 2023,” says the survey, which was conducted in March this year by the Improve agency on behalf of Mastercard among a sample of 1,016 respondents aged 18-55.

The youngest respondents are the most optimistic about the future

The survey also shows a decline in pessimism about the future. Only 15% of respondents believe that their financial situation will worsen, which is a decrease compared to the previous year. 35% expect their financial situation to improve, with optimism increasing particularly among respondents aged 18-29, 44 of whom believe their financial situation will improve.

On the other hand, 58% of respondents see inflation as the main problem, which represents a decrease of six percentage points compared to 2023.

One in three Croatians, i.e. 34% of respondents, are increasingly concerned about crime and corruption, an increase of 12 percentage points compared to 2023. Citizens are also concerned about a declining standard of living, the inability to support themselves, a deterioration in the quality of healthcare and issues such as immigration and climate change.

Respondents estimate the amount of their regular and additional income to be €1,035 per month, with disposable income being highest in the 40-49 age group (€1,224), while the income of 18-29 year olds is significantly lower at €751.

The majority of income is spent on food and drink

Thirteen per cent of respondents stated that they had no disposable income.

The largest proportion of income is spent on food and drink, on average €234 per respondent per month, followed by clothing and shoes at €113, loan repayments at €86 and savings and investments at €72.

At the same time, 83% of respondents say that market disruptions and inflation have impacted their household spending and that they are spending more on food they prepare at home (68%). The increase in spending compared to last year is most evident in the travel and restaurants category, where 45% of respondents are spending more on travel and restaurants than in 2023.

Croatians save through sales promotions (93%) and by comparing prices (88%). At the same time, 74% believe that now is not the right time to make major investments, such as buying a flat or a car.

Gea Kariz, Director at Mastercard Croatia, says that the increased optimism shown by the survey is confirmed by the Experience Economy Survey, which was conducted in January in a number of countries, including Croatia.

“The results show that Croatians, who are more optimistic about their financial future, are increasing their spending on experiences. This year, 57% of Croatians will spend more money on travelling, music festivals and gastronomic experiences than last year,” said Kariz.