Page 56 - SE Outlook Regions 2024

second quarter of 2023, according to data reported by the Croatian National Bank (HNB).
At the same time, the current and capital account ran a surplus of €0.6bn in the second quarter of 2023, up by €1.5bn from the same period of the previous year, mainly due to transactions from EU funds. The improvement in the current and capital account balance was also aided by the increase in net export of services, primarily as a result of strong increase in revenues from tourism.
In contrast, the foreign trade deficit widened paired with the concurrent decrease in goods exports and imports on an annual level. Foreign trade of goods posted a deficit of €4.71bn, up from €4.57bn a year earlier.
On the other hand, net exports of services increased to €3.38bn from €2.89bn, thanks mainly to a rise in income from tourist spending of foreigners, which stood at €3.18bn in the second quarter of 2023 from €2.69bn in the same period in the previous year. The primary account posted a surplus of €148mn versus a deficit of €54n in Q2 2021.
Croatia’s foreign trade deficit amounted to €12.89bn in January-November, down by 4.2% y/y, according to the latest available statistics office data. Total imports amounted to €29.85bn, down by 4.1% year on year, while exports decreased by 4% y/y to €16.97bn.
Up to the end of November, coverage of imports by exports was 57.3%.
3.5 External Environment - Kosovo
Until September 2023, the trade balance in goods showed a deficit of €3.29bn, representing an annual 4.8% increase, according to the central bank. During this period, exports fell by 7.2%, totaling €645.5mn (compared to €695.5mn until September 2022). Concurrently, the import of goods experienced a slight uptick of 2.6%, reaching a value of €3.9bn (compared to €3.8bn until September 2022).
According to the World Bank, exports of goods and services are expected to increase by 5.5% in 2024, slowing from a 9.8% growth in 2023, while imports are seen rising by 4.2% y/y, following a 4.6% estimated increase in 2023.
The World Bank said that continued uncertainties related to the war in Ukraine, the slowdown in Europe, and the domestic political context entail significant risks.
Closing the income gap with the European Union requires an acceleration in the implementation of structural reforms in energy, education, social protection and healthcare sectors.
56 SE Outlook 2024 www.intellinews.com