Croatia’s industrial production rises 7.5% in January 2025, driven by manufacturing growth

7 March 2025

The industrial sector in the Republic of Croatia recorded a notable increase in production at the beginning of 2025. In January, industrial production rose by 7.5% compared to the same month in the previous year, after adjusting for working days. This growth was primarily driven by the manufacturing sector, which experienced a 7.7% increase. The electricity, gas, steam, and air conditioning supply sector also contributed to the overall expansion, growing by 3.4%. However, the mining and extraction industry saw a decline of 2.0% over the same period.

On a month-to-month basis, total industrial production, adjusted for seasonal effects and working days, increased by 2.1% in January 2025 compared to December 2024. This suggests a steady upward trend in the sector’s output.

Inventory levels also reflected this growth. At the end of January 2025, total stocks of finished industrial products were 1.3% higher than at the end of the previous month. Compared to January 2024, inventories increased by 5.2%, indicating a buildup of goods ready for sale or further processing.

Despite the expansion in production, employment in the industrial sector continued to decline. The total number of employed persons in the industry fell by 0.7% in January 2025 compared to December 2024. On an annual basis, employment in the sector decreased by 2.2% from January 2024, suggesting ongoing structural adjustments or efficiency improvements that may be reducing labor demand.

These figures highlight the strength of Croatia’s industrial output at the start of the year, with manufacturing leading the way. However, the decline in employment indicates potential challenges in workforce dynamics, even as production volumes increase.

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