Saturday, June 27, 2009

Croatia Online – Cost Of Living Update

_Eurasian griffon

The Eurasian Griffon Vulture, pictured,  has his own cost of living equation, no doubt. Lucky for him that the Protection Centre in Cres has given him a few more options in recent years. For us humans, the cost of living is traditionally measured in monetary terms.

We’ve reported quite regularly on the cost of living in Croatia and our last detailed posting on this -  Croatia Online Cost Of Living Update - July 2007 – seems remarkably up to date on everything except exchange rates.

Whilst in July 2007, £1 sterling was worth about 10.4 kunas, now it’s about 8.6 kunas and that’s had a serious impact for those relying on GBP earnings to finance their holidays or life in Croatia. It’s not entirely surprising to see that the Euro exchange rate for kunas has hardly wavered through the global economic storms. Those, including occasionally ourselves,  promoting the myth that Croatia is outside the Euro Zone, would do well to study Croatian economic policy in this respect and the actuality of how closely the kuna follows the Euro. Yes, Croatia is theoretically outside the Euro Zone, but it has long had the sense to link its currency to another one more “stable”  than our pound.

For American  citizens, $1 (one dollar) is worth about 5.2 Croatian kunas so $2 will buy just over a half pint of beer (mala piva) or a cappuccino.

Macro economics aside, the cost of living in Croatia continues to be competitive, what ever that means in current global speak!.


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