The Characteristics of the State of Business of the Croatian Textile and Clothing Industry in 1996

Abstract

The textile and clothing economy achieves high exports to the West-european countries and in 1996 they were 54.9 % higher than the imports. However, the total state of business according to the annual account of 1996 showed a higher loss than profit as well as considerable deviations of the quotient of the total income and the number of employees in factories. The analyses of this ratio showed that the factories orientated to commission work (more than 90 %) achieved a lower total annual income per employee, and the higher the production for the domestic market is, the higher it is. It has also been ascertained that textile and clothing trade achieves considerably better financial results than the production range. Based upon this analyses of the macrobusiness of the Croatian textile and clothing industry, it is questionable whether the positive balance of a higher number of factories is to be expected in 1997. The managements of factories without regard to the process of reconstruction insist upon stimulating export measures of the Croatian government.