ANSA news

(ANSA) - ZAGREB - Croatian economy continues retracting, marking 12th consecutive quarter with negative trend, with additional 0,5% GDP drop registered in July-September 2014 according to the data released by the National institute for statistics. It is the only European country which has been in constant recession for six years. Excellent tourism season which has beaten all historic records despite bad weather has not managed to push the country's GDP in positive direction and neither have the stable growth of exports (+4%) and of industrial production (+2%), registered thanks to Croatia's joining the EU. High unemployment rate (around 20% of the workforce) and the pessimism of the population seem to be the crucial factors contributing to the long stagnation. According to the statistical data, retail consumption of the Croats has dropped by 1,1%, while public expenditure went down by 1,4%. However, the 0,5% drop remains milder than the ones registered in the first two quarters (-0,6% and -0,8%, respectively). The EU Commission estimated in November that Croatia's overall annual GDP drop will be of 0,7%. (ANSA).