Table H11 Indices of harmonised competitiveness indicators
Harmonised competitiveness indicators are calculated on the basis of weighted averages of bilateral exchange rates vis-à-vis the currencies of the trading partners of Croatia and are deflated by appropriate price or cost indices. The weights for the calculation of HCIs are based on bilateral data on trade in manufactured goods, as defined in Sections 5 to 8 of the Standard International Trade Classification (SITC) and trade in services in accordance with Extended Balance of Payments Services classification (EBOPS 2010) for the periods 1995–1997, 1998–2000, 2001–2003, 2004–2006, 2007–2009, 2010–2012, 2013–2015 and 2016–2018.
The weights incorporate information on both exports and imports. Import weights are the simple shares of each partner country in the total imports. Exports are double-weighted in order to account for “third-market effects”, i.e. to capture the competition faced in foreign markets from both domestic producers and exporters from third countries. The final overall weights of each partner country are obtained as the weighted average of the export and import weights. The HCIs are chain-linked at the end of each three-year period and updated every three years in order to reflect recent developments in the pattern of international trade.
The group of countries for the formation of HCIs published on the website of the Croatian National Bank (HCI-18) consists of 37 trading partners, including a) all other 19 euro area countries and b) the 18 remaining countries: Australia, Canada, Denmark, Hong Kong, Japan, Norway, Singapore, South Korea, Sweden, United Kingdom, Switzerland and the United States (HCI-12) as well as Bulgaria, China, the Czech Republic, Hungary, Poland and Romania.
The nominal HCI is calculated on the basis of data on bilateral exchange rates available on the ECB website.
The HCI deflated by consumer prices is calculated on the basis of data on harmonised consumer price indices for European countries (Eurostat) and for the other trading partners based on national consumer price indices.
The HCI deflated by producer prices is calculated on the basis of data on producer price indices in domestic manufacturing (according to the NACE Rev.2 classification) for European countries (Eurostat), and for the other trading partners these data are derived from data published by the Bank for International Settlements (BIS).
The HCI deflated by GDP deflators is calculated on the basis of GDP deflators derived from their quarterly national accounts as published by Eurostat for European countries and for the other trading partners they are derived from their national accounts as published by the BIS, OECD and IMF.
The HCI deflated by unit labour costs in the total economy is calculated on the basis of data that are for European countries derived from their quarterly national accounts as published by Eurostat. For the other trading partners, these data are derived from their national accounts as published by the BIS, OECD and IMF. The unit labour cost is the ratio of total compensation per employee to labour productivity, with labour productivity measured as GDP at constant prices divided by the total number of persons employed.