Page 84 - bne IntelliNews Southeastern Europe Outlook 2025

€257.1mn (up 18.3%), Privredna Banka Zagreb at €186.9mn (up 19.8%), and Erste&Steiermärkische Bank with €119.2mn.
Credit growth to non-financial corporations slowed from high levels in 2023, while housing loan growth remained solid at about 10%. The banking sector's liquidity coverage ratio (LCR) remained high, with an average of 220.2% at the end of 1H24, ensuring adequate liquidity to support credit activities.
Croatia's credit rating was upgraded to 'A-' by Fitch Ratings in September 2024.
5.4.3 Industry
Industrial production in Croatia decreased by 6.6% year-over-year in November 2024, according to the latest statistics office data, marking a downturn compared to previous months.
The decline was primarily driven by contractions in the manufacturing sector, which saw an 8.1% reduction, and the electricity, gas, steam and air conditioning supply sector, which decreased by 1.2%.
Conversely, the mining and quarrying sector experienced a modest increase of 3.0% during the same period.
Earlier in the year, industrial output showed variability. In June 2024, industrial production contracted by 8.3% y/y, the sharpest decline since May 2020.
This downturn was broad-based, affecting mining and quarrying, electricity, gas, steam and air conditioning supply, and manufacturing sectors. However, a rebound occurred in September 2024, with industrial production increasing by 1.0% compared to September 2023, driven by an 18.1% surge in mining and quarrying and a 1.0% rise in manufacturing.
The production of durable consumer goods decreased by 18.9% y/y in November 2024, while capital goods production fell by 15.8%. Non-durable consumer goods and intermediate goods also saw reductions of 9.6% and 4.2% respectively.
Employment in the industrial sector showed a slight decline. The total number of persons employed in industry in November 2024 remained unchanged from October 2024 but was 2.1% lower than in November 2023. Labour productivity in industry from January to November 2024 decreased by 0.3% y/y.
5.4.4 Major Sectors & Companies
Croatia's tourism industry, a key driver of the economy, continued its upward trajectory, contributing around 20% to GDP in 2024. The country welcomed over 21.3mn visitors, a 4% increase y/y, with 108.7mn overnight stays, up by 1%. Growth during the pre-season and
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