At its session today, the CNB Council discussed the latest economic and monetary developments, adopted the CNB Annual Report 2016 and the Croatian Mint Work Report 2016. The Council also enacted several decisions on matters falling within its sphere of competence.
Real GDP continued growth in the first quarter of 2017, rising at a similar pace as late in the previous year, with less favourable real trends at the beginning of the second quarter suggested by data for April. Consumer prices grew at a monthly rate of 0.5% in April, primarily due to seasonal increases in clothing and footwear prices, whereas the annual inflation rate accelerated to 1.4%. The CNB continued to pursue an expansionary monetary policy, sustaining the recovery in bank lending. Lending to non-financial corporations grew at the same annual rate as in the previous month, whereas lending to households accelerated annually due to an increase in kuna-denominated loans. The widening of the general government deficit in the first quarter of 2017, suggested by cash data released by the Ministry of Finance, can largely be attributed to the earlier payment of subsidies in this year than in 2016.