December marks spending peak in Croatia

28/12/2007

As in many countries around the world, Croatians spend more money during the last month of the year.

By Natasa Radic for Southeast European Times in Zagreb –28/12/07

Shopping malls were crowded with people who queued up for hours to buy last minute gifts. [File]

At the end of each year, analyses by financial experts at notable institutions, such as the Croatian Market Research Institute (GfK), show that spending by the Croatian public peaks in December. This year was no exception.

The average Croatian family has spent a record 1,100 euros this month, even though the average monthly salary in Croatia remains just below 700 euros.

"Croatians love spending in December and complaining they are poor in January," analysts said at the height of the Christmas shopping season. Debts from the previous year tend to haunt consumers in the new calendar year. Shopping trend studies suggest Croatians tend to pay with credit cards instead of cash, and use every opportunity to extend the period of payments or divide the payments into regular monthly installments.

In December, many Croatian employees receive a Christmas bonus, depending on how well their company performed during the year. The extra money is usually spent on gifts and products that would otherwise be unaffordable. Some companies provide employees with a special shopping voucher for a specific store.

According to GfK, Croatians enjoy shopping and spending money, especially in malls. More than 50% of men in Croatia consider shopping fun, and 76% of women agree.

Shopping malls, crowded with people who queued up for hours to buy last minute gifts, are favourite places to spend money. This year, some malls offered discounts, boosting price competition, especially in Zagreb.

Despite the record spending in December, most Croatians remain dissatisfied with their financial status, according to recent polls. More than 55% do not expect any improvement in their home budget. In fact, more than 50% think that they will have to pay more in the next year for general expenses.