increase in prices due to the euro or speculation? – Corriere.it

What is happening to prices in Croatia? An undeniable overheating of the cost of living to the point that according to some tour operators the country of the former Yugoslavia has reached levels that cast doubt on its competitiveness compared to the nearby beaches of the Veneto. But how strong and what caused the rise in prices? As is known, Croatia made a historic double leap on January 1st: it adopted the euro as its official currency (twentieth EU country) and adhered to the Schengen treaty by eliminating all customs and physical barriers with the rest of the Union . All of this does it have something to do with the flare up of inflation?

* THE OFFICIAL NUMBERS – Before the euro entered the pockets of Croatian citizens, inflation in the country (data from December 2022) was traveling at 13.5% annual: the highest figure in the entire EU. In May 2023, five months after the entry into force of the single currency the cost of living had cooled to 8.8%.

* THE SHOPPING BAG – All right then? No, because consumers experience different effects: food prices have risen by up to 30% the real estate market recorded a +14% and the government has already warned economic operators several times threatening to remove a series of subsidies and concessions to the smartass of the price tag.

* HOW IS THE ECONOMY (AND TOURISM) – The National Bank estimated GDP growth of 5.5% for 2023 even if this is now forecast has been revised downwards and will stand at 3% . But tourism continues to be a driving force for the Zagreb government. The national body has announced that in the first half of the year up to are already registered 6.7 million presences with an increase of 7% compared to the record levels of 2019. Tourism Minister Nikolina Brnjac provides an even more striking figure: in absolute terms the holiday sector already had a turnover of 672 million euros in 2023, 38% more again compared to four years ago.

* IN CONCLUSION – The numbers tell of a two-faced reality. If on the one hand they say that the general price index after the adoption of the euro fallson the other hand some sectors register a price boom. Food but also tourism: a boom, the latter which seems to be linked to an a very strong question by vacationers. A phenomenon that can also be found in Italy in recent weeks.