For the first time since May 2014, there was a slight decline of average income in Croatia last November. Average gross earnings per month were around HRK 8,400 and average net salary was around HRK 6,200. Furthermore, decline of industrial production was biggest since 2012.Wages have been falling since March 2018 and employers attribute this trend to the lack of surpluses, which could cover the demands for higher wages. They urge the government to help them, either with financial support or reduction of taxes. Many fear the ‘brain drain’ because of low financial stimulation of very high-skilled and highly educated workers. There are small differences between the salaries of different employee categories in Croatia. Those with university degrees earn around HRK 8,500 per month on average; those with high school earn approximately HRK 5,000 and those with good practical skills earn HRK 6,000. “I believe that the fall of income in November is only temporary; it is possible that companies have saved money for the payment of remunerations. Sectors with a shortage of workers will have to increase their salaries if they want to attract workforce, they will simply have to adjust to the market situation”, commented Economic Institute’s analyst Danijel Nestić for Croatia’s daily Večernji list.
InterCapital Securities will maintain liquidity for Krka and Triglav
It was announced today that Croatian company InterCapital Securities will, as of 1 February, maintain liquidity for Krka and Triglav stocks. Krka’s stocks are traditionally the most liquid assets on Ljubljana stock exchange. Stocks of Triglav also trade at a high price, though significantly lower than those of Krka.
Slovenia with the biggest share of bad loans in EU
According to Eurostat, bad loans in Slovenia amounted to 4% of GDP in 2017, the highest in EU. Only two other EU member states had a bad loans percentage exceeding 1% of GDP: Portugal at 1.3% of GDP, and the Czech Republic at 1.1% of GDP. However, the share of bad loans where the state was the lender has significantly decreased in recent years in Slovenia, from 13.3% of GDP in 2014 to 6.9% of GDP in 2017. According to Eurostat, the majority of bad loans in Slovenia relate primarily to debts owned by the Bank Assets Management Company (BAMC). Finland is ranked first in terms of the share of state guarantees in the EU (32% of GDP), followed by Austria (15.8%), Germany (13.3%) and Luxembourg (12.2%).
