Industrial Production Up 4.3% in June, Raw Materials and Semi-Finished Products Lead
Despite Production Growth, Industrial Employment Falls 5.3% Year-on-Year, DZS Data Shows
Despite Production Growth, Industrial Employment Falls 5.3% Year-on-Year, DZS Data Shows
Total industrial production in Croatia continued its positive trend in June 2026. According to data from the Croatian Bureau of Statistics (DZS), reported by Narodno.hr on Thursday, July 30, production was 4.3 percent higher than in the same month last year, and 5.3 percent higher compared to May.
The strongest momentum was achieved in the production of intermediate goods, raw materials and semi-finished products that form the basis for further processing. This sector grew by as much as 11.5 percent on a monthly basis, while compared to June 2025 it recorded a 14.8 percent increase.
A 5.7 percent monthly increase was also recorded for capital goods, while energy production remained almost unchanged. Durable consumer goods, such as household appliances and furniture, moved in the opposite direction, their production fell by 9.8 percent compared to May and by 13.8 percent year-on-year.
Manufacturing, which accounts for the largest share of Croatian industrial production, posted a 5.6 percent increase compared to the previous month and a 4 percent increase compared to the same period in 2025. On the other hand, mining and quarrying, as well as electricity, gas, steam, and air conditioning supply, recorded a year-on-year decline.
Despite production growth, the labor market sends a different message. The number of workers in industry was only 0.2 percent higher than in May, while compared to the same month last year it fell by 5.3 percent. According to Narodno.hr, this indicates that industry is achieving higher output with fewer workers, mainly due to automation, modernization of production processes, and increased productivity.
A positive sign for the Croatian economy is the rise in industrial production, suggesting that domestic companies are increasing output despite an uncertain international environment. However, the long-term strength of the industry will also depend on how well it retains workers, invests in new technologies, and develops higher-value-added products.
