Croatia’s current capital account surplus soars in fourth quarter on tourism revenue
ZAGREB (Croatia), April 1 (SeeNews) – Croatia’s balance of payments current account and capital account posted a surplus of 5.8% of gross domestic product (GDP) last year, compared to a 2% surplus/GDP in 2020, mainly due to a strong recovery in income from spending by foreign tourists, the central bank said.
“The sharp rise in the surplus was driven by strong growth in net services exports, in particular tourism revenue, which reached 87% of the 2019 level,” the central bank said in a statement on Thursday.
The Adriatic country’s revenue from foreign tourists almost doubled last year – to 9.1 billion euros ($10 billion) from 4.8 billion euros in 2020.
According to figures released earlier by the central bank, income from spending by international visitors amounted to 10.5 billion euros (19.5% of GDP) in 2019 before the pandemic and 9.5 billion euros. euros (18.4% of GDP) in 2018.
“The surplus in the secondary income and capital transactions accounts also increased, but to a much lesser extent, due to growth in net receipts from transactions with the EU budget and personal transfers. The worsening of the foreign trade deficit had an opposite effect, while the increase in the profits of banks and foreign companies led to a deterioration in the balance of the primary income account,” the central bank added.
As a result, the balance of payments financial account recorded a significantly higher net capital outflow than in 2020, reflecting a sharp increase in international reserves.
Details on Croatia‘s balance of payments follow (in millions of euros, unless otherwise indicated):
|2021||2020||Q4’21||Q4’20||2021 (in % of GDP)||2020 (in % of GDP)|
|CURRENT ACCOUNT BALANCE||-1,945||-56||-451||-223||3.4||-0.1|
|of which: tourist receipts:||9,122||4,814||1,008||467||15.9||9.6|
|CURRENT ACCOUNT and CAPITAL||3,312||1,018||-31||113||5.8||2.0|
|NET ERRORS AND OMISSIONS||-762||-395||-315||-115||-1.3||-0.8|
($= 0.9041 euros)