PRODUCTION AND SALE OF INDUSTRIAL PRODUCTS (PRODCOM), 2020
– Provisional Data, June 2021

 

In 2020, the total value of industrial products sold by enterprises engaged in the production of industrial products in the Republic of Croatia (irrespective of where those enterprises were registered) amounted to 128 721 million kuna. As compared to the previous year, the value of industrial products sold decreased by 10 861 million kuna, or by 7.8%. The value of the sale to external markets amounted to 53 378 million kuna, which accounts for 41.5% of the total value of industrial products sold.

According to the NKD 2007. industrial sections, the value of industrial products sold, according to the product activity, was the highest in section C Manufacturing, 102 388 million kuna, D Electricity, gas, steam and air conditioning supply, 22 846 million kuna, and B Mining and quarrying, 2 040 million kuna, while in section E Water supply; sewerage, waste management and remediation activities (only division 36), it was the lowest, 1 447 million kuna. The value of industrial products sold was the highest in division 35 Electricity, gas, steam and air conditioning supply (22 846 million kuna) and the lowest in division 12 Manufacture of tobacco products (308 million kuna).

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B	Mining and quarrying
C	Manufacturing
D	Electricity, gas, steam and air conditioning supply
E	Water supply; sewerage, waste management and remediation activities

 

In the Republic of Croatia, the share of industrial products sold on producers’ own account, according to product activity, was still dominant in 2020 and amounted to 98.0% of the total value of industrial products sold, while the share of the value of industrial products sold under contract with the principal (for third parties) amounted to only 2.0%. The highest share of industrial products sold under contract was recorded in divisions 15 (20.0%), 14 (16.7%), 28 (11.5%) and 24 (9.8%) of section C Manufacturing.

The comparison of industrial products sold in 21 counties of the Republic of Croatia (see table 2. and graph G-6.) shows that the highest share in the value of industrial products sold according to the product activity was recorded in the City of Zagreb, 22 812 million kuna (21.8%) and in the County of Varaždin, 10 240 million kuna (9.8%), while the lowest value of industrial products sold was recorded in the County of Dubrovnik-Neretva, only 259 million kuna (0.2%).

Data on the value of industrial products sold were obtained by the processing of the PRODCOM Survey on Industrial Production in 2020, which covered 3 055 industrial local units belonging to legal entities and tradesmen employing 10 and more persons. The structure of the coverage of legal entities and tradesmen by product activity in 2020, according to the NKD 2007. activity sections, was the following: 1.6% of them were covered by section B, 79.6% by section C, 17.7% by section D and 1.1% by section E (only division 36).

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NKD 2007. Divisions
10	Manufacture of food products
11	Manufacture of beverages
12	Manufacture of tobacco products
13	Manufacture of textiles
14	Manufacture of wearing apparel
15	Manufacture of leather and related products
16	Manufacture of wood and of products of wood and cork, except furniture;
	manufacture of articles of straw and plaiting materials
17	Manufacture of paper and paper products
18	Printing and reproduction of recorded media
19	Manufacture of coke and refined petroleum products
20	Manufacture of chemicals and chemical products
21	Manufacture of basic pharmaceutical products and pharmaceutical preparations
22	Manufacture of rubber and plastic products
23	Manufacture of other non-metallic mineral products
24	Manufacture of basic metals
25	Manufacture of fabricated metal products, except machinery and equipment
26	Manufacture of computer, electronic and optical products
27	Manufacture of electrical equipment
28	Manufacture of machinery and equipment n. e. c.
29	Manufacture of motor vehicles, trailers and semi-trailers
30	Manufacture of other transport equipment
31	Manufacture of furniture
32	Other manufacturing
33	Repair and installation of machinery and equipment

 

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01	County of Zagreb	08	County of Primorje-Gorski kotar	15	County of Šibenik-Knin
02	County of Krapina-Zagorje	09	County of Lika-Senj	16	County of Vukovar-Sirmium
03	County of Sisak-Moslavina	10	County of Virovitica-Podravina	17	County of Split-Dalmatia
04	County of Karlovac	11	County of Požega-Slavonija	18	County of Istria
05	County of Varaždin	12	County of Slavonski Brod-Posavina	19	County of Dubrovnik-Neretva
06	County of Koprivnica-Križevci	13	County of Zadar	20	County of Međimurje
07	County of Bjelovar-Bilogora	14	County of Osijek-Baranja	21	City of Zagreb

NOTES ON METHODOLOGY

This First Release contains the provisional data of the PRODCOM Survey on Industrial Production (IND-21/PRODCOM form) in 2020. It was carried out by the Croatian Bureau of Statistics on the basis of the Official Statistics Act (NN, No 25/20) and the Statistical Standards for the PRODCOM Survey on Industrial Production in 2020, the integral part of which is also the Nomenclature of Industrial Products − NIP 2020. The term "industry" used in this First Release is defined by products (and services) within the NKD 2007. sections B, C, D and E (only division 36). This definition of industry is wider than the definition used in the EU PRODCOM Survey.

PRODCOM indicators of industrial production

The provisional data refer to the most recent data related to industrial production statistics, which are derived from the annual results of the PRODCOM Survey on Industrial Production. The PRODCOM results provide detailed information about a national market and its competitiveness on international markets at the individual product/commodity level, because they are linked with foreign trade data via CT in the same way as the EU PRODCOM results with which they are harmonised. All data at the individual product level are collected on the basis of the Nomenclature of Industrial Products – NIP 2020., which was derived from the PRODCOM List 2020, which is an integral part of the harmonised Statistical Standards for the PRODCOM Survey in the Republic of Croatia. Table 1 presents aggregated results of the breakdown according to product activities, followed by graphs containing data on the value of industrial products sold and export, expressed in thousands of kuna and broken down according to the NKD 2007. sections and divisions. Table 2 presents aggregated results for counties, broken down by product activities according to the NIP 2020. Finally, table 3 shows industrial products sold in volume and value terms of the 10 most important selected individual products in the Republic of Croatia according to the PRODCOM List 2020 (aggregates of the NIP 2020. products) for the most recent available year, combined with data on imports and exports (external trade data derived from CT 2020) and calculated values of apparent domestic consumption for each selected product/commodity by adding imports to production and deducting exports. The 10 products were selected on the basis of their share in the total value of industrial products sold and export in the Republic of Croatia according to the results of the PRODCOM Survey on Industrial Production in 2020.

PRODCOM coverage and units. Reporting units in the PRODCOM Survey on Industrial Production are all trade companies and other legal entities and natural persons and parts thereof employing 10 and more persons that were engaged in industrial production and/or services (production on own account or on contract basis) in reference annual period, as defined in the NKD 2007. sections B, C, D and E (only division 36). Target statistical units are industrial enterprises and local units of industrial and non-industrial enterprises that produce products defined by the NIP (in line with the PRODCOM List). 

Statistical units or parts thereof that are “physically” situated outside of the territory of the Republic of Croatia are not covered. In profiling of statistical units – local units, the county principle is taken into account. In cases where an observation unit is engaged in industrial production on the territory of several different counties, e.g. in five counties, it is further divided into five local units. In order to stay in line with the EU PRODCOM regulations, the production intended for further processing in the same or in other legal units of the same enterprise is not considered its output. The coverage of reporting and statistical units is defined in the Address Book of Industrial Statistical Units, which was established and is regularly maintained by the Industry and Energy Statistics Department.

Data sources used in the annual updating of the Address Book are those of the Statistical Business Register, of other business statistics surveys on industry as well as other available information and data sources. A special criterion applied to the coverage of activities is the so-called 90% rule, which means that a share of at least 90% of gross value added must be achieved for each 4-digit group activity of the NKD 2007. (05.10 to 36.00). If this criterion is not met, the coverage of particular NKD 2007. 4-digit groups is extended to statistical units employing less than 10 persons, e.g. small industries such as baking or printing industries and the like.

The PRODCOM Survey for 2020 covered 3 055 enterprises (legal entities and tradesmen) with a response rate of 96.79%, while the non-response estimate was 3.21%.

PRODCOM concepts and definitions

Concepts and definitions used in the PRODCOM Survey of the Republic of Croatia are harmonised with those used in the PRODCOM Survey carried out within the EU. They provide further explanations used in the presentation of PRODCOM results, though it should be taken into account that in other contexts these concepts and definitions may have different meanings. They are intended only for the correct interpretation of the PRODCOM results and are harmonised with the concepts and definitions of the PRODCOM EU Survey.

PRODCOM product is an outcome of a certain economic activity. It is a generic term applied to products that have a physical dimension as well as for industrial services. According to the concept of the PRODCOM Survey, it is defined by the headings of the Nomenclature of Industrial Products – NIP, which is a national version of the EU PRODCOM List. A finished product is any product that has reached a certain stage of treatment or further processing in the production process, so that it is listed under a separate NIP heading. This term also covers all stages of finishing the product, such as cleaning, packing, dyeing, quality testing, sorting and the like.

Industrial services. This term covers treatment, repairs and maintenance services as well as assembly work. Industrial services are normally recorded for each service listed in the NIP and their value is expressed in thousands of kuna, mainly as a provision for the rendered service. Only separately invoiced services are recorded. There are special rules for presenting data on each industrial service in the previously mentioned PRODCOM standards. On the other hand, some industrial services are classified according to the NKD 2007. as non-industrial services, e.g. Maintenance and repair of motor vehicles (section G, class 45.20), Repair of computers and personal and household goods (section S, division 95), Publishing activities, including software publishing (section J, division 58), Motion picture, video and television programme production, sound recording and music publishing activities (section J, division 59), Computer programming, consultancies and related activities (section J, division 62) and Information service activities, including data processing (section J, division 63) and, therefore, they were not a subject of the 2020 IND-21/PRODCOM Survey.

NIP 2020. is the hierarchically structured Nomenclature of Industrial Products (and services), created for measuring the annual industrial production in volume and value terms. It is a more detailed national version of the PRODCOM List. It covers all products and services resulting from performing activities of the NKD 2007. sections B, C, D and E (only division 36). The NIP structure corresponds at all levels to that of the NKD 2007., KPD 2015. as well as of the PRODCOM List 2020., with a further detailed national breakdown.

The NIP 2020. is linked with the Customs Tariff (CT) of the Republic of Croatia in the same way as the PRODCOM List is linked with the EU Combined Nomenclature (CN). It is regularly updated at the beginning of each year according to the updates of the PRODCOM List.

PRODCOM is an acronym that stands for the production statistics of the European Union of industrial production that are defined by the EU Regulation No. 3924/91. The acronym was derived from the French title "PRODuction COMmunautaire" (Community Production). The PRODCOM Survey is designed to provide for information on national, European and international markets. It monitors industrial products defined by the PRODCOM List, which is updated every year. In order to reflect the international dimension of these markets, there is a link between production statistics and foreign trade statistics established in such a way that the EU PRODCOM List was harmonised with the EU Combined Nomenclature (CN) for the reference year in question, so that production statistics data can be comparable with foreign trade data on the detailed product/commodity level. It enabled the calculation of apparent consumption.

PRODCOM List is a list of products, goods and industrial services listed under the PRODCOM headings. The PRODCOM List for 2020¹⁾ includes 3 800 compulsory codes and headings that are mainly used in the compilation of detailed product statistics of the EU. The PRODCOM List for 2020¹⁾ is based on the version 2.1²⁾ (= KPD 2015.³⁾) and is linked with the Combined Nomenclature for 2020 (CN 2020) of the EU via reference notes. It is not structured as a hierarchical classification and that is why it is a "list", although products are divided into "divisions" that correspond to the divisions of the NACE Rev. 2 and cover almost all products and services of the NACE sections B and C. In principle, the PRODCOM headings consist of items or groups of items taken over from the CN in order to allow the comparability of foreign trade and production data and, therefore, they have to be updated at the beginning of each year according to changes in the Combined Nomenclature (CN).

 

1) Commission Regulation (EU) 2017/2119 of 22 November 2017 establishing the "Prodcom list" of industrial products provided for by Council Regulation (EEC) No 3924/91 (OJ L 325 of 8 December 2017).

2) Classification of products by activity of the Republic of Croatia 2015 (NN, No. 157/14). KPD 2015 is identicall on all hierarchical levels with CPA version 2.1 of the EU.

3) Commission Regulation (EU) No 1209/2014 of 29 October 2014 amending Regulation (EC) No 451/2008 of the European Parliament and of the Council establishing a new statistical classification of products by activity (CPA) and repealing Council Regulation (EEC) No 3696/93 (OJ L 336, 22 November 2014)

 

Industrial products sold in PRODCOM. The term "industrial products sold" refers to the production done by statistical units over a period of time that was sold (invoiced) in the reference year. The physical volume and value of industrial products sold are normally recorded for products listed in the NIP if they were sold to other entities on the domestic market, in own shops or exported to international markets. This also includes own-produced products hired out or leased to third parties (e.g. computer equipment, telephone installations, washing machines). Industrial products sold also include finished products (or services) that a statistical unit produced on own account as well as those produced or further processed on a fee or a contract basis for a principal (contract processing) if such production took place on the territory of the Republic of Croatia. It does not include finished products used, or to be used, in further processing in local units of the same enterprise or finished products put on stock to be sold later.

The value of PRODCOM industrial products sold is calculated on the basis of the selling price a producer obtained/will obtain during the reporting period (invoiced values). The value of production includes packaging costs even if they are charged separately, but the following costs are excluded: any turnover tax and consumer tax charged (VAT and excises), separately charged freight costs and any discounts granted to customers. If finished products are hired out or leased to third parties, then prices obtainable on the market for the product in question are defined as estimated values.

Contract processing (contract work). In the PRODCOM sense, the production on a fee or contract basis exists if a statistical unit (contractor) produces or processes particular NIP products ordered by a principal who also supplies, free of charge, the material necessary for that production or processing. The production on a fee or a contract basis is the production carried out under special arrangements between an ordering unit (principal) and a producing unit (contractor). In such a production, only the contractor must report the value of the actual production of industrial products according to the contract, that is, in the country where the production actually took place, in order to avoid double presentation of data. In these cases, the contractor reports the production under the same codes of NIP products as for the production on own account, while, concerning the industrial products sold, he presents only the value of the fee actually paid by a principal for a service of production. In any arrangement for the production or processing on the contract basis, the principal and the producer must belong to different enterprises (business entities), for, according to the definitions of the PRODCOM Statistical Standards, the production or processing on a contract basis between local units belonging to the same enterprise is not possible.

Apparent domestic consumption is a derived indicator calculated by balancing data on industrial products sold in volumes and values for 10 most important NIP 2020. individual products with comparable exports/imports volume and value data for the same products/commodities or their aggregates at the PRODCOM List 2020 level (originally foreign trade data aggregated at the CN 2020 levels using Customs Tariff 2020). The following formula was used in the calculation: production + imports – exports. The importance criterion of the NIP 2020. products for the Republic of Croatia has been defined according to the value of industrial products sold and export. Data are presented in physical measurement units (volume) and in thousands of kuna (value).

Note. Detailed tables of the PRODCOM results for 2020 will be available in the forecoming Statistical Report entitled Industrial Production in 2020 – PRODCOM Annual Results, No. 1679, which is planned to be issued by the end of March 2022.

 

Abbreviations
CPA	Classification of Products by Activity
CT	Customs Tariff
EU	European Union
hl	hectolitre
kg	kilogram
KPD 2015.	Classification of Products by Activity, 2015 national version
kVA	kilovolt-ampere
l	litre
m3	cubic metre
mm	milimetre
N	nitrogen
n. e. c.	not elsewhere classified
NACE	Classification of Economic Activities in the European Community
NIP 2020.	Nomenclature of Industrial Products, 2020 version
NKD 2007.	National Classification of Activities, 2007 version
NN	Narodne novine, official gazette of the Republic of Croatia
p. r. s.	put up for retail sale
p/st	pieces/sticks
PRODCOM	PRODuction in the COMmunity
VAT	value added tax

 

Symbols
-	no occurrence
<	less than
≤	less than or equal to
>	more than
=	equal

 

The survey whose data are published in this First Realese has been conducted with the financial assistance of the European Union. The contents of this document are the sole responsibility of the Croatian Bureau of Statistics and can under no circumstances be regarded as reflecting the position of the European Union.

 

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Prepared by:
Ivana Zoroja Milić, Goran Dolšak and Luka Mihelj

 

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