QUARTERLY NATIONAL ACCOUNTS
NOTES ON METHODOLOGY
Quarterly gross domestic product (GDP)
Quarterly gross domestic product (GDP) data focus on short-term movements in the economy, while the main purpose of the quarterly GDP estimate is the calculation of a real growth rate. By expenditure approach, the GDP is presented at market prices and gross value added (GVA) by activities at basic prices.
The data series on GDP for the period from the first quarter of 1995 to the fourth quarter of 2025 are available at current prices, constant prices of the previous year and constant prices of the reference year (2021 = 100). The data presented in these tables are revised in line with the First Release NR-2025-2-2 Annual Gross Domestic Product, 1995 – 2024, published on 17 October 2025.
The quarterly time series at constant prices is expressed at prices of the previous year, by dividing current prices by indices expressed in average prices of the previous year. Basic chain-linked indices are calculated by using the time series at prices of the previous year, with linking to the reference year (2021 = 100). Real growth rates are calculated by using the series of basic chain-linked indices.
The time series at constant prices of the previous year is additive (GDP and GVA equal the sum of categories and subcategories), while the time series in constant prices of the reference year is not additive (GDP and GVA do not equal the sum of categories and subcategories). The non-additivity of the sum of the components of GDP and GVA is the result of applying the basic chain-linked index calculation method at a more detailed structure of categories and subcategories.
The software package Jdemetra+, version 2.1.0., is used in the process of seasonal adjustment (identification and evaluation of seasonal and calendar effects). It has been officially recommended as the software package for seasonal adjustment to all members of the European Statistical System since February 2015. Seasonal and calendar adjustment has been done by using the X13 ARIMA method.
Due to the characteristics of the implemented adjustment method, the adding of new quarterly or monthly data in the series may cause changes in the seasonally and calendar adjusted indices for previous periods.
Analytical framework, concepts, definitions and classification
The methodology used is consistent with the European System of National and Regional Accounts (ESA 2010).
The GDP measures the total value of final goods and services produced by resident institutional units during a certain period of time.
For the calculation of the GDP at current and constant market prices by expenditure category, the following classifications were used: the Classification of Individual Consumption by Purpose (COICOP), the Standard International Trade Classification (SITC) and the Central Product Classification (CPC).
The classification of business entities by activities is in line with the NKD 2007, which is directly comparable to the NACE Rev. 2 classification. The product classification, which was used for the calculation of the GVA in current and constant prices by activities, is harmonised with the National Nomenclature of Industrial Products and Services, which is comparable to the PRODCOM classification.
The GDP estimates include all activities within the ESA 2010 production boundary and cover the total territory of the Republic of Croatia.
The estimates are prepared on an accrual basis.
Compilation practice
Expenditure approach
1. Current prices
The compilation of the GDP at market prices, according to the expenditure approach at current prices, is based on data from regular surveys of the Croatian Bureau of Statistics, the Ministry of Finance, the Croatian National Bank and the Financial Agency.
Final consumption expenditure of households is calculated from regular surveys of the Croatian Bureau of Statistics on turnover data for retail trade and for hotels and restaurants. Expenditure on other services, which are not covered by regular surveys of the Croatian Bureau of Statistics, was extrapolated from the base year quarterly values by using volume indices from the production approach and relevant cost of living indices until the fourth quarter of 2003. Since the first quarter of 2004, relevant sub-indices of the consumer price indices (CPI) have been used for this purpose.
Final consumption expenditure of households, national concept (P31_S14_NC) is compiled as the sum of final consumption expenditure of households, domestic concept (P31_S14_DC) and final consumption expenditure of resident households in the rest of the world (P31_S14_W1) less final consumption expenditure of non-resident households on the economic territory (P31_S14_W0).
Final consumption expenditure of households, domestic concept (P31_S14_DC) is allocated according to the durability of goods into durable goods, semi-durable goods and non-durable goods and services.
The government final consumption expenditures data and the non-profit institutions serving households expenditure data (NPISH) were calculated by using the Ministry of Finance data on the general government. Expenditure components are calculated according to the cost method. Output is derived as a sum of the compensation of employees, the consumption of fixed capital, other taxes on production and intermediate consumption. Sales are an estimation due to the lack of quarterly data sources.
Gross fixed capital formation data were calculated by means of a commodity flow method, using data on the production and import of capital goods and construction activity data.
Gross fixed capital formation is allocated in more detail according to the main type of assets.
Changes in inventories and acquisition less disposal of valuables (P5M) include changes in inventories (P.52), acquisition less disposal of valuables (P.53) and statistical discrepancy (the difference in the GDP calculation by production and expenditure approach).
Changes in inventories were calculated by using the data of the Croatian Bureau of Statistics on changes in inventories.
Data on imports and exports of goods and services are based on the balance of payments data of the Croatian National Bank (CNB). The application of the Balance of Payments Manual, 6th edition (BPM6) affected the following most important changes in the balance of payments current account. Data on exports and imports of goods include only the goods that are subject to a change of ownership between residents and non-residents. Goods imported and exported for finishing, working or processing are no longer considered objects of trade in the balance of payments.
On the other hand, the services account includes manufacturing services on goods owned by others (finishing, working or processing). Thus, the balance of payments includes only the net value of a service that includes a compensation that binds to the remanufacturing and not the value of remanufactured goods.
Since the first quarter of 2024, statistics on import from other EU Member States have included data on distance sales provided by the Tax Administration of the Republic of Croatia. Based on the Eurostat’s recommendation, data on import related to distance sales from other EU Member States (OSS – One-Stop Shop) are included in national statistics on import.
Exports and imports of goods and services are allocated in more detail according to groups of countries (EU Member States, EU Member States of the euro area, EU Member States outside the euro area and countries outside EU).
Detailed notes on methodology are available on the website of the Croatian National Bank.
2. Constant prices
Individual components of the GDP by expenditure category at constant prices were calculated by deflating the current market price data, using indices at prices of the previous year.
Data on household consumption at constant prices were calculated by using the relevant CPI sub-indices.
Concerning government expenditures and expenditures for non-profit institutions serving households, an assumption of constant productivity was applied so that the wage and salary indices at constant prices were calculated by dividing the data on current expenditures on wages and salaries by indices of the number of persons employed. Expenditures on other goods and services were deflated by using the relevant CPI sub-indices and industrial producer price indices.
Gross fixed capital formation data are deflated by domestic and import price indices of capital goods. Deflators for investment in construction facilities are the price index of building material (PPI) and the income index in the construction activity.
Changes in inventories and acquisition less disposal of valuables (P5M) include changes in inventories (P.52), acquisition less disposal of valuables (P.53) and statistical discrepancy (the difference in the GDP calculation by production and expenditure approach).
Changes in inventories of final goods and work in progress were deflated by price indices of industrial products. Changes in inventories of raw materials were deflated by industrial producer price indices and import price indices of raw materials. For the deflation of changes in inventories of goods purchased for resale, the relevant consumer price indices were used.
At the Eurostat level, as in most EU Member States, the changes in inventories and acquisition less disposal of valuables (P5M) indicator is not published in constant prices of the reference year (chain-linked series), for methodological reasons. Due to the non-additivity of the chain-linked series, such data are not suitable for interpretation in absolute amounts and can lead to wrong conclusions by the user.
Chain-linking involves the loss of additivity for all years except the reference year and the directly following year, because these are the only periods expressed in prices of the reference year. For other years, the chain-linked components of the GDP will not sum to the chain-linked GDP.
In addition, chain-linking cannot be performed directly on variables that can take both negative and positive values.
For the above-mentioned reasons, the data for changes in inventories and acquisition less disposal of valuables (P5M) are published only in current and constant prices of the previous year.
Exports of goods were deflated by using industrial producer price indices on non-domestic market and Fisher-type unit value indices. Imports of goods were deflated by using partner countries' industrial producer price indices on non-domestic market and Fisher-type unit value indices.
Exports of services were deflated by relevant price indices for goods on the domestic market. Imports of services were deflated by relevant price indices on the markets of the most significant trading partner countries.
Production approach
1. Current prices
The calculation of the GVA at current prices is based on data from regular surveys of the Croatian Bureau of Statistics, the Croatian National Bank, the Croatian Financial Services Supervisory Agency, the Croatian Regulatory Authority for Network Industries and the Croatian Pension Insurance Institute.
Besides the above-mentioned data sources, data used for the calculation of the GVA are Tax Administration data on taxable and non-taxable supplies. These data are obtainable from value added tax (VAT) declarations submitted by entrepreneurs on the monthly and quarterly bases. The data are collected separately for legal entities and natural persons. The calculation is done for each group at the two-digit NKD 2007 level.
Data on taxes on products are compliant with published quarterly government accounts data and, according to the national accounts, represent data on government cash receipts adjusted to the ESA methodology in a way that time-adjusted cash (TAC) method is implemented. Data on subsidies on products are based on data of the Ministry of Finance.
The GDP at market prices is derived from the GVA at basic prices by adding taxes on products less subsidies on products to the latter total.
2. Constant prices
The calculation of the GVA is given at constant prices of the previous year and at constant prices of the reference year (2021 = 100).
For the compilation at constant prices, various indicators from regular surveys of the Croatian Bureau of Statistics were used as well as data from other institutions. Appropriate volume indices at constant prices were used for data calculation in agriculture, forestry and fishing activities, industrial production, construction, trade, hotels and restaurants, transport, communication, and financial activities. The calculation was done at the two- and three-digit NKD 2007 levels.
For most other service activities, an input indicator (usually the number of employed persons) was used. The calculation was performed at the four-digit NKD 2007 level.
Income approach
1. Current prices
Gross domestic product by the income approach equals the sum of compensation of employees, net taxes on production and imports (taxes on production and imports less subsidies on production and imports), gross operating surplus, and mixed income.
The components of the gross domestic product according to the income approach are only available at current prices, because purely monetary flows cannot be divided into a price component and a volume component.
Compensation of employees (D1) includes all income in cash or kind that employees received as compensation for their work and all employers' social contributions. Employers’ social contributions include compulsory and voluntary social contributions. Remuneration to employees includes the following: commuting costs covered by employers, housing and family separation compensations, children’s allowances, special holiday supplements, jubilee awards etc. Gross wages and salaries include tips in restaurants, hairdressing salons, taxis and for similar services. The calculation of the compensation of employees at current prices is based on data from regular surveys of the Croatian Bureau of Statistics.
Taxes on production and imports (D2) include taxes on product and other taxes on production.
Taxes on products are taxes that are payable per unit of a given good or service produced or transacted. Taxes on products include VAT, excises, import duties and similar taxes.
Other taxes on production consist of all taxes that enterprises incur as a result of engaging in production, independent of the quantity or value of the goods and services produced or sold. They include taxes on the ownership and use of land, buildings and other constructions; taxes on the use of fixed assets; taxes on the total wage bill and payroll taxes; taxes on pollution etc.
Subsidies on production and imports (D3) include subsidies on product and other subsidies on production.
Subsidies on products are subsidies payable per unit of a good or service produced or imported. They can be specified as a specific amount of money per unit of quantity of a good or service; a specified percentage of the price per unit or as the difference between a specified target price and the market price paid by a buyer.
Other subsidies on production consist of subsidies which resident producer units may receive as a consequence of engaging in production. The following examples are included: subsidies on payroll or work force, subsidies to reduce pollution, grants for interest relief made to resident producer units, even when they are intended to encourage capital formation.
Gross operating surplus is a residual category of value added by activities calculated by diminishing gross value added by compensation of employees and other net taxes on production. This item is created in the non-financial and financial sector and households sector. In the assessment of housing services by owner-occupiers (imputed rent), the net operating surplus was estimated at 2.5% of the total net value of dwellings. In non-market activities, the gross operating surplus equals the consumption of fixed capital.
Mixed income is the alternative term for an operating surplus of unincorporated enterprises because it is impossible to distinguish between their capital incomes and labour incomes.
Abbreviations
CNB Croatian National Bank
EU European Union
Eurostat Statistical Office of the European Union
NACE Rev.2 Statistical Classification of Economic Activities in the European Community, Rev. 2
NKD 2007 National Classification of Activities, 2007 version
NPISH non-profit institutions serving households
PRODCOM PRODucts of the European COMmunity