CNB Council: Accelerated GDP growth in Q3

Published: 14/11/2019

The CNB Council today discussed the information on the latest economic and monetary developments, adopted the Semi-annual Information on the Financial Condition, the Degree of Price Stability Achieved and the Implementation of Monetary Policy in the First Half of 2019 and adopted several decisions on matters falling within its competence.

Available monthly indicators suggest that real GDP growth accelerated in the third quarter of 2019. Unemployment continued to fall, after stagnating in the second quarter, while the rise in employment decelerated. The growth of nominal gross wages accelerated slightly in the third quarter, accompanied by the rise in wages both in the public and in the private sector. The annual rate of consumer price inflation held steady in September at its August level of 0.8%. Financing costs continued to fall for the most part, reflecting the accommodative monetary policy. The annual growth of bank placements slowed down at the end of September to 3.0%, reflecting the continuation in the decrease of corporate lending. General government budget surplus was slightly below HRK 2.5bn in the second quarter of 2019, which is an increase by about HRK 200m from the same quarter of the previous year. The strong increase in revenues, aided by the favourable rise in personal consumption and imports, as well as stronger EU funds absorption capacity, was offset by an equal increase in expenditures.

At its meeting today, the CNB Council approved the proposal of Slatinska banka d.d., Slatina, to appoint Oliver Klesinger as Member of the Management Board of the Bank. Approval was also granted for the merger of HPB-Stambena štedionica d.d., Zagreb, with Hrvatska poštanska banka d.d., Zagreb.