Croatians to spend 2.1 bln euro for Christmas - chamber of commerce

"The tax reform and higher incomes have resulted in optimism and increased consumer consumption, which is precisely the reason for the growth compared to 2018," the head of the trade department at HGK, Tomislava Ravlic, said in a statement over the weekend.

The successful tourism season and record-high employment during the past several years have also had a positive impact on consumption, Ravlic said.

In addition, more and more employers are deciding to pay their workers an extra salary this year, as well as higher Christmas and other bonuses, she said, noting that half a million Croatian citizens have so far received the so-called 13th salary.

According to Ravlic, the citizens' optimism is also demonstrated by the 3.7% rise in retail sales in the first nine months of 2019.

The Croatian government is preparing to launch a fourth round of tax reforms next year, aimed at lowering the tax burden on tourism and boosting youth employment.

According to the latest data by Croatia's statistical office, the average net monthly wage in the country has increased to 6,418 kuna ($950/863 euro) in September, up by a real 2.8% on the year.

(1 euro = 7.43836 kuna)