The economy of Croatia is a high-income service based
social market economy with the
tertiary sector accounting for 70% of total gross domestic product (GDP).
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
joined the
World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation
in the United Nations System, governments use the organization to establish, revise, and e ...
in 2000,
NATO
The North Atlantic Treaty Organization (NATO, ; french: Organisation du traité de l'Atlantique nord, ), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two No ...
in 2009 and became a member of the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
on 1 July 2013. Croatia is about to Join the
Eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
on January 1st 2023 and adopt € as national currency. On the same date Croatia will also join the
Schengen Area
The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and j ...
as 28th member of the organization. Croatia is also negotiating membership of
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
organization, which it hopes to join in coming years.
the 2008 Global Financial Crisis badly affected Croatian economy which saw significant downturn in economic growth as well as progress in economic reform which resulted in six years of recession and a cumulative decline in GDP of 12.5%. Croatia formally emerged from the recession in the fourth quarter of 2014, and had continuous GDP growth until 2020. The Croatian economy reached pre
crisis levels in 2019, but due to the
Coronavirus pandemic GDP decreased by 8.4% in 2020. Growth rebounded in 2021 and Croatia recorded its largest year-over-year GDP growth since 1991.
Croatia's post-pandemic recovery was supported by strong
private consumption
Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast to investing, which is spending for acquisition of ''future'' income. Consumption is a major concept in economics and is also studied in many o ...
, better-than-expected performance in the
tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
industry, and a boom in merchandise
export
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
s. The first nine months of 2021 saw merchandise exports amounting to 13.3 billion euro, an annual increase of 24.6%. This made 2021 Croatia's record export year, surpassing 2019 by 2 billion euro.
Croatian exports in 2022 saw continuation of rapid growth which reached 33.5% growth over same period in 2021 in the first 10 months of the year. If this trend continues, Croatian exports will reach all time high of €24.1 billion in 2022. Croatian Economy also saw continuation of rapid economic growth based on good tourism receipts and export noumbers as well as rapidly expanding ICT sector which saw rapid growth and revenue that rival Croatian Tourism. Croatian economy is expected to grow between 5.9 and 7.8% in real terms in 2022 and it is expected to reach between $72 and $73.6 billion according to preliminary estimates by Croatian Government. Croatian Purchasing Power Parity in 2022 for the first time should exceed $40 000, however considering Croatian economy experienced 6 years of deep recession, catching up will take several more years of high growth. In 2023 Croatian economy is expected to slow down, between 1 and 2.6% with inflation expected to remain high at 7% in 2023.
Tourism is one of the main pillars of the Croatian economy, comprising 19.6% of Croatia's GDP. Croatia is working to become an energy powerhouse with its floating liquefied natural gas (
LNG
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
) regasification terminal on the island of Krk and investments in
green energy, particularly
wind energy,
solar
Solar may refer to:
Astronomy
* Of or relating to the Sun
** Solar telescope, a special purpose telescope used to observe the Sun
** A device that utilizes solar energy (e.g. "solar panels")
** Solar calendar, a calendar whose dates indicate t ...
and
geothermal energy
Geothermal energy is the thermal energy in the Earth's crust which originates from the formation of the planet and from radioactive decay of materials in currently uncertain but possibly roughly equal proportions. The high temperature and pres ...
, having opened 17 MW geothermal power plant in
Ciglena
Ciglena is a village in Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, ...
in late 2019, that is the largest power plant in continental Europe with
binary technology
Binary may refer to:
Science and technology Mathematics
* Binary number, a representation of numbers using only two digits (0 and 1)
* Binary function, a function that takes two arguments
* Binary operation, a mathematical operation that ta ...
and starting the work on the second one in the summer of 2021. The
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
intends to spend about $1.4 billion on grid modernisation, with a goal of increasing renewable energy source connections by at least 800 MW by 2026 and 2,500 MW by 2030 and predicts that renewable energy resources as a share of total energy consumption will grow to 36.4% in 2030, and to 65.6% in 2050.
In 2021 Croatia joined the list of countries with its own automobile industry, with
Rimac Automobili
Rimac Automobili (, \'Ri-mats\) is a Croatian car manufacturer headquartered in Sveta Nedelja, Croatia, that develops and produces electric sports cars, drivetrains and battery systems. The company was founded in 2009 by Mate Rimac. Rimac Auto ...
's
Nevera started being produced. The company also took over
Bugatti Automobiles in November same year and started building its new HQ in
Zagreb
Zagreb ( , , , ) is the capital (political), capital and List of cities and towns in Croatia#List of cities and towns, largest city of Croatia. It is in the Northern Croatia, northwest of the country, along the Sava river, at the southern slop ...
, titled as the ‘
Rimac Campus’, that will serve as the company’s international research and development (R&D) and production base for all future Rimac products, as well as home of R&D for future Bugatti models. The company also plans to build battery systems for different manufacturers from the automotive industry
This campus will also become the home of R&D for future Bugatti models due to the new joint venture, though these vehicles will be built at Bugatti’s Molsheim plant in France.
On Friday, 12 November 2021
Fitch raised Croatia's
credit rating by one level, from ‘BBB-‘ to ‘BBB’, Croatia's highest
credit rating in history,
with a positive outlook, noting progress in
preparations for euro area membership and a strong recovery of the Croatian economy from the pandemic crisis.
In late March 2022
Croatian Bureau of Statistics announced that Croatia's industrial output rose by 4% in February, thus growing for 15 months in a row.
Croatia continued to have strong growth during 2022 fuelled by tourism revenue
and increased exports.
According to a preliminary estimate, Croatia's GDP in Q2 grew by 7.7% from the same period of 2021.
The International Monetary Fund (IMF) projected in early September 2022 that Croatia's economy will expand by 5.9% in 2022, whilst
EBRD expects Croatian GDP growth to reach 6.5% by the end of 2022.
Pfizer
Pfizer Inc. ( ) is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer ...
announced launching a new production plant in
Savski Marof
Savski Marof is a naselje (settlement) in the municipality of Brdovec, Zagreb County, Croatia. According to the 2001 census, it has 35 inhabitants living in an area of . This makes it the least dense settlement and the smallest by population in B ...
whilst Croatian
IT industry
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system ( ...
grew 3.3%
confirming the trend that started with
Coronavirus pandemic where the Croatia's digital economy increased by 16 percent on average annually from 2019 to 2021, and by 2030 its value could reach 15 percent of GDP, with the ICT sector the main driver of that growth.
Croatia will join both the
Eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
and
Schengen Area
The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and j ...
in January of 2023
which will strengthen the country’s integration into the European economy and make cross border trade with both European countries and European trade partners easier. The minimum wage is expected to rise to NET 700
EUR
The euro (symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . Th ...
in 2023, further increasing consumer spending and combating the high inflation rate.
History
Pre-1990
![Rijeka oil refinery around 1930](https://upload.wikimedia.org/wikipedia/commons/c/c1/Rijeka_oil_refinery_around_1930.jpg)
When Croatia was still part of the
Dual Monarchy, its
economy
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...
was largely agricultural. However, modern industrial companies were also located in the vicinity of the larger cities. The
Kingdom of Croatia Kingdom of Croatia may refer to:
* Kingdom of Croatia (925–1102), an independent medieval kingdom
* Croatia in personal union with Hungary (1102–1526), a kingdom in personal union with the Kingdom of Hungary
* Kingdom of Croatia (Habsburg) (152 ...
had a high ratio of population working in agriculture. Many industrial branches developed in that time, like forestry and wood industry (
stave
Stave may refer to:
Places
* Stave (Krupanj), a village in Serbia
* Stave Hill, in London
* Stave Lake, in British Columbia, Canada
* Stave River, in British Columbia, Canada
* Stave Run, a river in Virginia, United States
Other uses
* Stave ...
fabrication, the production of
potash
Potash () includes various mined and manufactured salts that contain potassium in water-soluble form. ,
lumber mills,
shipbuilding
Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to befor ...
). The most profitable one was stave fabrication, the boom of which started in the 1820s with the clearing of the oak forests around
Karlovac
Karlovac () is a city in central Croatia. According to the 2011 census, its population was 55,705.
Karlovac is the administrative centre of Karlovac County. The city is located on the Zagreb- Rijeka highway and railway line, south-west of Zagre ...
and
Sisak
Sisak (; hu, Sziszek ; also known by other alternative names) is a city in central Croatia, spanning the confluence of the Kupa, Sava and Odra rivers, southeast of the Croatian capital Zagreb, and is usually considered to be where the Posavin ...
and again in the 1850s with the marshy oak masses along the Sava and Drava rivers. Shipbuilding in Croatia played a huge role in the 1850s
Austrian Empire
The Austrian Empire (german: link=no, Kaiserthum Oesterreich, modern spelling , ) was a Central-Eastern European multinational great power from 1804 to 1867, created by proclamation out of the realms of the Habsburgs. During its existence, ...
, especially the long-range sailing boats. Sisak and
Vukovar were the centres of river-shipbuilding.
Slavonia
Slavonia (; hr, Slavonija) is, with Dalmatia, Croatia proper, and Istria, one of the four historical regions of Croatia. Taking up the east of the country, it roughly corresponds with five Croatian counties: Brod-Posavina, Osijek-Baranja ...
was also mostly an agricultural land and it was known for its silk production. Agriculture and the breeding of cattle were the most profitable occupations of the inhabitants. It produced
corn
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
of all kinds,
hemp
Hemp, or industrial hemp, is a botanical class of ''Cannabis sativa'' cultivars grown specifically for industrial or medicinal use. It can be used to make a wide range of products. Along with bamboo, hemp is among the fastest growing plants o ...
,
flax
Flax, also known as common flax or linseed, is a flowering plant, ''Linum usitatissimum'', in the family Linaceae. It is cultivated as a food and fiber crop in regions of the world with temperate climates. Textiles made from flax are known in ...
, tobacco, and great quantities of
liquorice
Liquorice (British English) or licorice (American English) ( ; also ) is the common name of ''Glycyrrhiza glabra'', a flowering plant of the bean family Fabaceae, from the root of which a sweet, aromatic flavouring can be extracted.
The liqu ...
.
[Mariann Nagy – Croatia in the Economic Structure of the Habsburg Empire in the Light of the 1857 Census]
p. 88Society for the Diffusion of Useful Knowledge
The Society for the Diffusion of Useful Knowledge (SDUK) was founded in London in 1826, mainly at the instigation of Whig MP Henry Brougham, with the object of publishing information to people who were unable to obtain formal teaching or who pr ...
: The Penny Cyclopaedia of the Society for the Diffusion of Useful Knowledge, vol 22, p. 100-101
The first steps towards industrialization began in the 1830s and in the following decades the construction of big industrial enterprises took place. During the 2nd half of the 19th and early 20th century there was an upsurge of industry in Croatia, strengthened by the construction of
railways
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
and the
electric-power production. However, the industrial production was still lower than agricultural production. Regional differences were high. Industrialization was faster in inner Croatia than in other regions, while
Dalmatia
Dalmatia (; hr, Dalmacija ; it, Dalmazia; see #Name, names in other languages) is one of the four historical region, historical regions of Croatia, alongside Croatia proper, Slavonia, and Istria. Dalmatia is a narrow belt of the east shore of ...
remained one of the poorest provinces of Austria-Hungary. The slow rate of modernization and rural overpopulation caused extensive emigration, particularly from Dalmatia. According to estimates, roughly 400,000 Croats emigrated from Austria-Hungary between 1880 and 1914. In 1910 8.5% of the population of
Croatia-Slavonia
The Kingdom of Croatia-Slavonia ( hr, Kraljevina Hrvatska i Slavonija; hu, Horvát-Szlavónország or ; de-AT, Königreich Kroatien und Slawonien) was a nominally autonomous kingdom and constitutionally defined separate political nation with ...
lived in urban settlements.
[Richard C. Frucht: ''Eastern Europe: An Introduction to the People, Land, and Culture'']
p. 462–463
In 1918 Croatia became part of the
Kingdom of Yugoslavia
The Kingdom of Yugoslavia ( sh-Latn-Cyrl, separator=" / ", Kraljevina Jugoslavija, Краљевина Југославија; sl, Kraljevina Jugoslavija) was a state in Southeast Europe, Southeast and Central Europe that existed from 1918 unt ...
, which was in the interwar period one of the least developed countries in Europe. Most of its industry was based in
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
and
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
, but further industrial development was modest and centered on
textile mills
Textile Manufacturing or Textile Engineering is a major industry. It is largely based on the conversion of fibre into yarn, then yarn into fabric. These are then dyed or printed, fabricated into cloth which is then converted into useful goods s ...
,
sawmills,
brick yards and f
ood-processing plants. The economy was still traditionally based on agriculture and raising of livestock, with
peasants accounting for more than half of Croatia's population.
In 1941 the
Independent State of Croatia
The Independent State of Croatia ( sh, Nezavisna Država Hrvatska, NDH; german: Unabhängiger Staat Kroatien; it, Stato indipendente di Croazia) was a World War II-era puppet state of Nazi Germany and Fascist Italy (1922–1943), Fascist It ...
(NDH), a
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
puppet state of
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
and
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
, was established in parts of
Axis-occupied Yugoslavia. The economic system of NDH was based on the concept of "Croatian
socialism
Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
".
[Rory Yeoman]
Visions of Annihilation: The Ustasha Regime and the Cultural Politics of Fascism, 1941–1945
University of Pittsburgh Pre, 2013, p. 197 The main characteristic of the new system was the concept of a
planned economy
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, part ...
with high levels of state involvement in economic life. The fulfillment of basic economic interests was primarily ensured with measures of repression.
[ Hrvoje Matković: Povijest nezavisne države Hrvatske, Drugo, dopunjeno izdanje Zagreb, 2002., p. 118] All large companies were placed under state control and the property of the regime's national enemies was nationalized. Its currency was the
NDH kuna. The Croatian State Bank was the central bank, responsible for issuing currency. As the war progressed the government kept printing more money and its amount in circulation was rapidly increasing, resulting in high inflation rates.
After World War II, the new
Communist Party of Yugoslavia
The League of Communists of Yugoslavia, mk, Сојуз на комунистите на Југославија, Sojuz na komunistite na Jugoslavija known until 1952 as the Communist Party of Yugoslavia, sl, Komunistična partija Jugoslavije mk ...
resorted to a command economy on the Soviet model of rapid industrial development. In accordance with the socialist plan, mainly companies in the
pharmaceutical industry, the
food industry
The food industry is a complex, global network of diverse businesses that supplies most of the food consumed by the world's population. The food industry today has become highly diversified, with manufacturing ranging from small, traditiona ...
and the
consumer goods industry were founded in
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
.
Metal
A metal (from Greek μέταλλον ''métallon'', "mine, quarry, metal") is a material that, when freshly prepared, polished, or fractured, shows a lustrous appearance, and conducts electricity and heat relatively well. Metals are typicall ...
and
heavy industry was mainly promoted in
Bosnia
Bosnia and Herzegovina ( sh, / , ), abbreviated BiH () or B&H, sometimes called Bosnia–Herzegovina and often known informally as Bosnia, is a country at the crossroads of south and southeast Europe, located in the Balkans. Bosnia and He ...
and
Serbia
Serbia (, ; Serbian language, Serbian: , , ), officially the Republic of Serbia (Serbian language, Serbian: , , ), is a landlocked country in Southeast Europe, Southeastern and Central Europe, situated at the crossroads of the Pannonian Bas ...
. By 1948 almost all domestic and foreign-owned capital had been nationalized. The industrialization plan relied on high taxation, fixed prices,
war reparations, Soviet credits, and export of food and raw materials. Forced
collectivization of agriculture was initiated in 1949. At that time 94% of agricultural land was privately owned, and by 1950 96% was under the control of the social sector. A rapid improvement of food production and the standard of living was expected, but due to bad results the program was abandoned three years later.
Throughout the 1950s
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
experienced rapid urbanization.
Decentralization
Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.
Conce ...
came in 1965 and spurred growth of several sectors including the prosperous
tourist industry
Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. The World Tourism Organization defines tourism mo ...
.
SR Croatia was, after
SR Slovenia
The Socialist Republic of Slovenia ( sl, Socialistična republika Slovenija, sh-Latn-Cyrl, separator=" / ", Socijalistička Republika Slovenija, Социјалистичка Република Словенија), commonly referred to as Sociali ...
, the second most developed republic in
Yugoslavia
Yugoslavia (; sh-Latn-Cyrl, separator=" / ", Jugoslavija, Југославија ; sl, Jugoslavija ; mk, Југославија ;; rup, Iugoslavia; hu, Jugoszlávia; rue, label=Pannonian Rusyn, Югославия, translit=Juhoslavija ...
with a ~55% higher GDP per capita than the Yugoslav average, generating 31.5% of Yugoslav GDP or $30.1Bn in 1990. Croatia and Slovenia accounted for nearly half of the total
Yugoslav GDP, and this was reflected in the overall
standard of living
Standard of living is the level of income, comforts and services available, generally applied to a society or location, rather than to an individual. Standard of living is relevant because it is considered to contribute to an individual's quality ...
. In the mid-1960s, Yugoslavia lifted emigration restrictions and the number of emigrants increased rapidly. In 1971 224,722 workers from Croatia were employed abroad, mostly in
West Germany
West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 O ...
. Foreign remittances contributed $2 billion annually to the economy by 1990. Profits gained through Croatia's industry were used to develop poor regions in other parts of former Yugoslavia, leading to Croatia contributing much more to the federal Yugoslav economy than it gained in return. This, coupled with
austerity
Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spend ...
programs and
hyperinflation in the 1980s, led to discontent in both Croatia and Slovenia which eventually fuelled political movements calling for independence.
[International Business Publications]
Croatia Investment and Trade Laws and Regulations Handbook
p. 22
Transition and war years
![Unemployment in Croatia 1996](https://upload.wikimedia.org/wikipedia/commons/8/8d/Unemployment_in_Croatia_1996._-_2019.png)
In the late 1980s and early 1990s, with the collapse of socialism and the beginning of
economic transition,
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
faced considerable economic problems stemming from:
* the legacy of longtime communist mismanagement of the economy;
* damage during the internecine fighting to bridges, factories, power lines, buildings, and houses;
* the large refugee and displaced population, both Croatian and Bosnian;
* the disruption of economic ties; and
* mishandled privatization
At the time Croatia gained independence, its economy (and the whole
Yugoslavian economy) was in the middle of recession. Privatization under the new government had barely begun when war broke out in 1991. As a result of the
Croatian War of Independence
The Croatian War of Independence was fought from 1991 to 1995 between Croat forces loyal to the Government of Croatia—which had declared independence from the Socialist Federal Republic of Yugoslavia (SFRY)—and the Serb-controlled Yugosl ...
, infrastructure sustained massive damage in the period 1991–92, especially the revenue-rich tourism industry.
Privatization in Croatia
Privatization in Croatia refers to political and economic reforms which include the privatization of state-owned assets in Croatia. Privatization started in the late 1980s under Yugoslav Prime Minister Ante Marković and mostly took place in the 1 ...
and transformation from a planned economy to a
market economy
A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers ...
was thus slow and unsteady, largely as a result of public mistrust when many state-owned companies were sold to politically well-connected at below-market prices. With the end of the war, Croatia's economy recovered moderately, but corruption, cronyism, and a general lack of transparency stymied economic reforms and foreign investment.
[Istvan Benczes]
Deficit and Debt in Transition: The Political Economy of Public Finances in Central and Eastern Europe
Central European University Press, 2014, p. 203 The privatization of large government-owned companies was practically halted during the war and in the years immediately following the conclusion of peace. As of 2000, roughly 70% of Croatia's major companies were still state-owned, including water, electricity, oil, transportation, telecommunications, and tourism.
The early 1990s were characterized by high inflation rates. In 1991 the
Croatian dinar was introduced as a transitional currency, but inflation continued to accelerate. The anti-inflationary stabilization steps in 1993 decreased retail price inflation from a monthly rate of 38.7% to 1.4%, and by the end of the year, Croatia experienced deflation. In 1994 Croatia introduced the
kuna
Kuna may refer to:
Places
* Kuna, Idaho, a town in the United States
** Kuna Caves, a lava tube in Idaho
* Kuna Peak, a mountain in California
* , a village in the Orebić municipality, Croatia
* , a village in the Konavle municipality, Croatia ...
as its currency.
As a result of the macro-stabilization programs, the negative growth of GDP during the early 1990s stopped and turned into a positive trend. Post-war reconstruction activity provided another impetus to growth. Consumer spending and private sector investments, both of which were postponed during the war, contributed to the growth in 1995–1997.
Croatia began its independence with a relatively low external debt because the debt of Yugoslavia was not shared among its former republics at the beginning. In March 1995 Croatia agreed with the Paris Club of creditor governments and took 28.5% of Yugoslavia's previously non-allocated debt over 14 years. In July 1996 an agreement was reached with the London Club of commercial creditors, when Croatia took 29.5% of Yugoslavia's debt to commercial banks. In 1997 around 60 percent of Croatia's external debt was inherited from former Yugoslavia.
[Istvan Benczes]
Deficit and Debt in Transition: The Political Economy of Public Finances in Central and Eastern Europe
Central European University Press, 2014, p. 205-206
At the beginning of 1998 value-added tax was introduced. The central government budget was in surplus in that year, most of which was used to repay foreign debt. Government debt to GDP had fallen from 27.30% to 26.20% at the end of 1998. However, the consumer boom was disrupted in mid 1998, as a result of the bank crisis when 14 banks went bankrupt.
Unemployment increased and GDP growth slowed down to 1.9%. The
recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
that began at the end of 1998 continued through most of 1999, and after a period of expansion GDP in 1999 had a negative growth of −0.9%.
In 1999 the government tightened its fiscal policy and revised the budget with a 7% cut in spending.
[Gale Research]
Countries of the World and Their Leaders: Yearbook 2001
p. 456
In 1999 the private sector share in GDP reached 60%, which was significantly lower than in other former socialist countries. After several years of successful macroeconomic stabilization policies, low inflation and a stable currency, economists warned that the lack of fiscal changes and the expanding role of the state in the economy caused the decline in the late 1990s and were preventing sustainable economic growth.
Economy since 2000
The new government led by the president of
SDP,
Ivica Račan
Ivica Račan (; 24 February 1944 – 29 April 2007) was a Croatian politician who served as Prime Minister of Croatia from 2000 to 2003, heading two centre-left coalition governments.
Račan became the first prime minister of Croatia not to be a ...
, carried out a number of structural reforms after it won the
parliamentary elections on 3 January 2000. The country emerged from the recession in the 4th quarter of 1999 and growth picked up in 2000. Due to overall increase in stability, the economic rating of the country improved and interest rates dropped. Economic growth in the 2000s was stimulated by a credit boom led by newly privatized banks, capital investment, especially in road construction, a rebound in tourism and credit-driven consumer spending. Inflation remained tame and the currency, the kuna, stable.
In 2000 Croatia generated 5,899 billion kunas in total income from the shipbuilding sector, which employed 13,592 people. Total exports in 2001 amounted to $4,659,286,000, of which 54.7% went to the countries of the EU. Croatia's total imports were $9,043,699,000, 56% of which originated from the EU.
Unemployment reached its peak in late 2002, but has since been steadily declining. In 2003, the nation's economy would officially recover to the amount of GDP it had in 1990.
In late 2003 the new government led by
HDZ
The Croatian Democratic Union ( hr, Hrvatska demokratska zajednica, lit=Croatian Democratic Community, HDZ) is the major conservative, centre-right political party in Croatia. It is one of the two major contemporary political parties in Cro ...
took over the office. Unemployment continued falling, powered by growing industrial production and rising GDP, rather than only seasonal changes from tourism. Unemployment reached an all-time low in 2008 when the annual average rate was 8.6%,
GDP per capita peaked at $16,158,
while public debt as percentage of GDP decreased to 29%. Most economic indicators remained positive in this period except for the
external debt as Croatian firms focused more on empowering the economy by taking loans from foreign resources.
Between 2003 and 2007, Croatia's private-sector share of GDP increased from 60% to 70%.
The
Croatian National Bank had to take steps to curb further growth of indebtedness of local banks with foreign banks. The dollar debt figure is quite adversely affected by the EUR/USD ratio—over a third of the increase in debt since 2002 is due to currency value changes.
2009–2015
Economic growth has been hurt by the global financial crisis.
Immediately after the crisis it seemed that Croatia did not suffer serious consequences like some other countries. However, in 2009, the crisis gained momentum and the decline in GDP growth, at a slower pace, continued during 2010. In 2011 the GDP stagnated as the growth rate was zero.
[Martina Dalić (2013): "Croatia: A Prolonged Crisis without Recovery" in Novotny Vitt (ed.) ]
From Reform to Growth: Managing the Economic Crisis in Europe
', Centre for European Studies, Brussels, May/2013, p. 67-88 Since the global crisis hit the country, the unemployment rate has been steadily increasing, resulting in the loss of more than 100,000 jobs. While unemployment was 9.6% in late 2007,
in January 2014 it peaked at 22.4%.
In 2010
Gini coefficient was 0,32. In September 2012, Fitch ratings agency unexpectedly improved Croatia's economic outlook from negative to stable, reaffirming Croatia's current BBB rating. The slow pace of privatization of state-owned businesses and an over-reliance on tourism have also been a drag on the economy.
Croatia joined the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
on 1 July 2013 as the 28th member state. The Croatian economy is heavily interdependent on other principal economies of Europe, and any negative trends in these larger EU economies also have a negative impact on Croatia.
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
,
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
and
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
are Croatia's most important trade partners.
In spite of the rather slow post-recession recovery, in terms of income per capita it is still ahead of some European Union member states such as
Bulgaria
Bulgaria (; bg, България, Bǎlgariya), officially the Republic of Bulgaria,, ) is a country in Southeast Europe. It is situated on the eastern flank of the Balkans, and is bordered by Romania to the north, Serbia and North Macedon ...
, and
Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern, and Southeast Europe, Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, S ...
.
In terms of average monthly wage, Croatia is ahead of 9 EU members (
Czech Republic
The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...
,
Estonia
Estonia, formally the Republic of Estonia, is a country by the Baltic Sea in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the sea across from Sweden, to the south by Latvia, a ...
,
Slovakia
Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the s ...
, Latvia,
Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populous ...
,
Hungary
Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia a ...
,
Lithuania
Lithuania (; lt, Lietuva ), officially the Republic of Lithuania ( lt, Lietuvos Respublika, links=no ), is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea. Lithuania ...
, Romania, and Bulgaria).
![Croatia Export Treemap](https://upload.wikimedia.org/wikipedia/commons/5/55/Croatia_Export_Treemap.jpg)
The annual average unemployment rate in 2014 was 17.3% and Croatia has the third-highest unemployment rate in the European Union, after
Greece
Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders with ...
(26.5%), and Spain (24.%).
Of particular concern is the heavily backlogged
judiciary
The judiciary (also known as the judicial system, judicature, judicial branch, judiciative branch, and court or judiciary system) is the system of courts that adjudicates legal disputes/disagreements and interprets, defends, and applies the law ...
system, combined with inefficient
public administration
Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...
, especially regarding the issues of land ownership and corruption in the public sector. Unemployment is regionally uneven: it is very high in eastern and southern parts of the country, nearing 20% in some areas, while relatively low in the north-west and in larger cities, where it is between 3 and 7%. In 2015 external debt rose by 2.7 billion euros since the end of 2014 and is now around €49.3 billion.
2016–2020
During 2015 the Croatian economy started with slow but upward economic growth, which continued during 2016 and conclusive at the end of the year seasonally adjusted was recorded at 3.5%. The better than expected figures during 2016 enabled the Croatian Government and with more tax receipts enabled the repayment of debt as well as narrow the current account deficit during Q3 and Q4 of 2016 This growth in economic output, coupled with the reduction of government debt has made a positive impact on the financial markets with many ratings agencies revising their outlook from negative to stable, which was the first upgrade of Croatia's credit rating since 2007. Due to consecutive months of economic growth and the demand for labour, plus the outflows of residents to other European countries, Croatia had recorded the biggest fall in the number of unemployed during the month of November 2016 from 16.1% to 12.7%.
2020– present
2020
COVID-19 Pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
has caused more than 400,000 workers to file for economic aid of 4000.00
HRK./month. In the first quarter of 2020, Croatian GDP rose by 0.2% but then in Q2
Government of Croatia
The Government of Croatia ( hr, Vlada Hrvatske), formally the Government of the Republic of Croatia ( hr, Vlada Republike Hrvatske), commonly abbreviated to Croatian Government ( hr, hrvatska Vlada), is the main executive branch of government ...
announced the biggest quarterly GDP plunge of -15.1% since GDP has been measured. Economic activity also plunged in Q3 2020 when GDP slid by an additional -10.0%.
In autumn 2020
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
estimated total GDP loss in 2020 to be -9.6%. Growth was set to pick up in the last month of Q1 2021 and the second quarter of 2021 respectively +1.4% and +3.0%, meaning that Croatia was set to reach 2019 levels by 2022.
2021
In July 2021 projection was improved to 5.4% due to the strong outturn in the first quarter and the positive high-frequency indicators concerning consumption, construction, industry and tourism prospects. In November 2021 Croatia outperformed these projections and the real GDP growth was calculated to be 8.1% for the year 2021, improving its projection of 5.4% GDP growth made in July. The recovery was supported by strong private consumption, the better-than-expected performance of tourism and the ongoing resilience of the export sector. Preliminary data point to tourism-related expenditure already exceeding 2019 levels, which has been supportive of both employment and consumption. Exports of goods have also continued to perform strongly (up 43%yoy in 2Q21) pointing to resilient competitiveness. Expressed in
euros
The euro (symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . T ...
, Croatian merchandise exports in the first nine months of 2021 amounted to 13.3 billion euros, an annual increase of 24.6 per cent. At the same time, imports rose 20.3 per cent to 20.4 billion euros. The coverage of imports by exports for the first nine months is 65.4 per cent. This made 2021 Croatian export's record year as the score from 2019 was exceeded by 2 billion euros.
Exports recovered in all major markets, more precisely with all
EU countries and
CEFTA
The Central European Free Trade Agreement (CEFTA) is an international trade agreement between countries mostly located in Southeastern Europe. Founded by representatives of Poland, Hungary and Czechoslovakia, CEFTA expanded to Albania, Bosnia and ...
countries. Specifically, on the EU market, only a lower export result is recorded in relations with
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
,
Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
and
Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
.
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
is again the main market for Croatian products, followed by
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
and
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
. Apart from the high contribution of
crude oil
Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crude ...
that
Ina sends to
Hungary
Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia a ...
to the
Mol refinery for processing, the export of
artificial fertilizer
A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...
s from
Petrokemija
Petrokemija is a Croatian chemical company which specializes in manufacturing agricultural fertilizers. It was founded in 1968 as a branch of the state-owned oil company INA with its headquarters in Kutina. In the late 1990s it was privatised an ...
also has a significant contribution to growth.
For 2022, the
Commission revised downwards its projection for Croatia's economic growth to 5.6% from 5.9% previously predicted in July 2021. Commission again confirmed that the volume of Croatia's GDP should reach its 2019 level during 2022, while in 2023 the GDP will grow by 3.4%. The Commission warned that the key downside risks stem from Croatia's relatively low
vaccination rates, which could lead to stricter containment measures, and continued delays of the
earthquake-related reconstruction. On the upside, Croatia's potential entry into the
Schengen area
The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and j ...
and
euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
adoption towards the end of the forecast period could benefit investment and trade.
On Friday, 12 November 2021
Fitch raised Croatia's
credit rating by one level, from ‘BBB-‘ to ‘BBB’, Croatia's highest credit rating in history,
with a positive outlook, noting progress in
preparations for Eurozone membership and a strong recovery of the Croatian economy from the pandemic crisis.
This is also secured by the failure of the
eurosceptic
Euroscepticism, also spelled as Euroskepticism or EU-scepticism, is a political position involving criticism of the European Union (EU) and European integration. It ranges from those who oppose some EU institutions and policies, and seek reform ...
party
Hrvatski Suverenisti
The Croatian Sovereignists ( hr, Hrvatski suverenisti) are a conservative and Christian right-wing political party in Croatia. The party was founded in 2019 and is led by Marijan Pavliček.
History Foundation
The party was originally found ...
in a bid on the referendum to block Euro adoption in Croatia. In December 2021 Croatia's industrial production increased for the thirteenth consecutive month, observing the growth of production increasing in all of the five aggregates. meaning that industrial production in 2021 increased by 6.7 percent.
2022
In late March 2022
Croatian Bureau of Statistics announced that Croatia's industrial output rose by 4% in February, thus growing for 15 months in a row.
Croatia continued to have strong growth during 2022 fuelled by tourism revenue
and increased exports.
According to a preliminary estimate, Croatia's GDP in Q2 grew by 7.7% from the same period of 2021.
The International Monetary Fund (IMF) projected in early September 2022 that Croatia's economy will expand by 5.9% in 2022, whilst
EBRD expects Croatian GDP growth to reach 6.5% by the end of 2022.
Pfizer
Pfizer Inc. ( ) is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer ...
announced launching a new production plant in
Savski Marof
Savski Marof is a naselje (settlement) in the municipality of Brdovec, Zagreb County, Croatia. According to the 2001 census, it has 35 inhabitants living in an area of . This makes it the least dense settlement and the smallest by population in B ...
whilst Croatian
IT industry
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system ( ...
grew 3.3%
confirming the trend that started with
Coronavirus pandemic where the Croatia's
digital economy
The digital economy is a portmanteau of digital computing and economy, and is an umbrella term that describes how traditional Brick and mortar, brick-and-mortar economic activities (production, distribution, trade) are being transformed by Interne ...
increased by 16 percent on average annually from 2019 to 2021. It is estimated that by 2030 its value could reach 15 percent of GDP, with the
ICT
ICT may refer to:
Sciences and technology
* Information and communications technology
* Image Constraint Token, in video processing
* Immunochromatographic test, a rapid immunoassay used to detect diseases such as anthrax
* In-circuit test, in ...
sector being the main driver of that growth.
On Tuesday 12 July 2022, the
Eurogroup approved Croatia becoming the 20th member of the
Eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
, with the formal introduction of the
Euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
currency to take place on the 1st of January 2023.
Croatia is also set to join the
Schengen Area
The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and j ...
in 2023.
By 2023, the minimum wage is ostensibly expected to rise to NET 700
EUR
The euro (symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . Th ...
,
increasing consumer spending.
Sectors
Industry
File:Uljanik ship launch (01).JPG, Uljanik
Uljanik was a shipbuilding company in Pula, Croatia.
History
Uljanik was founded in 1856, in the carefully selected bay of Pula (then known as Pola) as a shipyard of the Austro-Venetian Navy (from 1867 to 1918 Austro-Hungarian Navy). The foun ...
shipyard
File:Asfaltna baza Ivanovec.1.jpg, Asphalt plant in Ivanovec
Ivanovec ( hu, Drávaszentiván) is a village in Međimurje County, Croatia. It had a population of 2,093 in the 2011 census.
The village is administratively part of the wider area of Čakovec
Čakovec (; hu, Csáktornya; la, Aquama; german: ...
File:Sisak oil refinery2.JPG, Sisak
Sisak (; hu, Sziszek ; also known by other alternative names) is a city in central Croatia, spanning the confluence of the Kupa, Sava and Odra rivers, southeast of the Croatian capital Zagreb, and is usually considered to be where the Posavin ...
oil refinery
File:Zadar2006.2.JPG, Maraska
Maraska is a Croatian company best known for its maraschino, a liqueur obtained from the distillation of Marasca cherries.
History
In 1759, Francesco Drioli, a Venetian merchant, began industrial-scale production of maraschino in Zadar, Croati ...
liqueur
A liqueur (; ; ) is an alcoholic drink composed of spirits (often rectified spirit) and additional flavorings such as sugar, fruits, herbs, and spices. Often served with or after dessert, they are typically heavily sweetened and un-aged beyond ...
factory in Zadar
Zadar ( , ; historically known as Zara (from Venetian and Italian: ); see also other names), is the oldest continuously inhabited Croatian city. It is situated on the Adriatic Sea, at the northwestern part of Ravni Kotari region. Zadar serv ...
Tourism
File:Costa Serena u Dubrovniku.jpg, Cruise ship in Dubrovnik
Dubrovnik (), historically known as Ragusa (; see notes on naming), is a city on the Adriatic Sea in the region of Dalmatia, in the southeastern semi-exclave of Croatia. It is one of the most prominent tourist destinations in the Mediterran ...
.
File:Kopački rit wooden trail.JPG, Kopački Rit
Kopački Rit is a nature park in eastern Croatia in the municipalities of Bilje and Kneževi Vinogradi. It is located northwest of the confluence of the Drava and the Danube, situated at the border with Serbia. It comprises many backwaters and p ...
Nature Reserve.
File:St. Mark's Church, Zagreb (16054174011).jpg, St. Mark's Church in Zagreb
Zagreb ( , , , ) is the capital (political), capital and List of cities and towns in Croatia#List of cities and towns, largest city of Croatia. It is in the Northern Croatia, northwest of the country, along the Sava river, at the southern slop ...
.
File:Varaždin - stari grad.jpg, Varaždin
)
, image_photo =
, image_skyline =
, image_flag = Flag of Varaždin.svg
, flag_size =
, image_seal =
, seal_size =
, image_shield = Grb_Grad ...
Old Town.
File:Golden Cape.jpg, Zlatni Rat beach on the Brač island.
Tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
is a notable source of income during the summer and a major industry in Croatia. It dominates the Croatian service sector and accounts for up to 20% of Croatian GDP. Annual tourist industry income for 2011 was estimated at €6.61 billion. Its positive effects are felt throughout the economy of Croatia in terms of increased business volume observed in retail business, processing industry orders and summer seasonal employment. The industry is considered an export business, because it significantly reduces the country's external trade imbalance. Since the conclusion of the Croatian War of Independence, the tourist industry has grown rapidly, recording a fourfold rise in tourist numbers, with more than 10 million tourists each year. The most numerous are tourists from Germany, Slovenia, Austria and the
Czech Republic
The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...
as well as Croatia itself. Length of a tourist stay in Croatia averages 4.9 days.
The bulk of the tourist industry is concentrated along the Adriatic Sea coast.
Opatija was the first holiday resort since the middle of the 19th century. By the 1890s, it became one of the most significant European health resorts. Later a large number of resorts sprang up along the coast and numerous islands, offering services ranging from
mass tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
to catering and various niche markets, the most significant being
nautical tourism
Nautical tourism, also called water tourism, is tourism that combines sailing and boating with vacation and holiday activities. It can be travelling from port to port in a cruise ship, or joining boat-centered events such as regattas or landing ...
, as there are numerous marinas with more than 16 thousand berths,
cultural tourism
Cultural tourism is a type of tourism activity in which the visitor's essential motivation is to learn, discover, experience and consume the tangible and intangible cultural attractions/products in a tourism destination. These attractions/produ ...
relying on appeal of medieval coastal cities and numerous cultural events taking place during the summer. Inland areas offer mountain resorts,
agrotourism and
spa
A spa is a location where mineral-rich spring water (and sometimes seawater) is used to give medicinal baths. Spa towns or spa resorts (including hot springs resorts) typically offer various health treatments, which are also known as balneoth ...
s. Zagreb is also a significant tourist destination, rivalling major coastal cities and resorts.
Croatia has unpolluted marine areas reflected through numerous nature reserves and 99
Blue Flag beach
The Blue Flag is a certification by the Foundation for Environmental Education (FEE) that a beach, marina, or sustainable boating tourism operator meets its standards.
The Blue Flag is a trademark owned by FEE, which is a not-for-profit non-gov ...
es and 28 Blue Flag marinas. Croatia is ranked as the 18th most popular tourist destination in the world.
About 15% of these visitors (over one million per year) are involved with
naturism
Naturism is a lifestyle of practising non-sexual social nudity in private and in public; the word also refers to the cultural movement which advocates and defends that lifestyle. Both may alternatively be called nudism. Though the two terms ar ...
, an industry for which Croatia is world-famous. It was also the first European country to develop commercial naturist resorts.
Agriculture
Croatian agricultural sector subsists from exports of
blue water fish, which in recent years experienced a tremendous surge in demand, mainly from Japan and
South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...
. Croatia is a notable producer of
organic foods and much of it is exported to the European Union.
Croatian wine
Croatian wine (, pl. ) has a history dating back to the Ancient Greek settlers, and their wine production on the southern Dalmatian islands of Vis, Hvar and Korčula some 2,500 years ago. Like other old world wine producers, many traditional grap ...
s,
olive oil
Olive oil is a liquid fat obtained from olives (the fruit of ''Olea europaea''; family Oleaceae), a traditional tree crop of the Mediterranean Basin, produced by pressing whole olives and extracting the oil. It is commonly used in cooking: f ...
and
lavender are particularly sought after.
Croatia produced in 2018:
* 2.1 million tons of
maize
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
;
* 776 thousand tons of
sugar beet
A sugar beet is a plant whose root contains a high concentration of sucrose and which is grown commercially for sugar production. In plant breeding, it is known as the Altissima cultivar group of the common beet (''Beta vulgaris''). Together wi ...
(the beet is used to manufacture
sugar
Sugar is the generic name for sweet-tasting, soluble carbohydrates, many of which are used in food. Simple sugars, also called monosaccharides, include glucose, fructose, and galactose. Compound sugars, also called disaccharides or double ...
and
ethanol
Ethanol (abbr. EtOH; also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound. It is an Alcohol (chemistry), alcohol with the chemical formula . Its formula can be also written as or (an ethyl ...
);
* 744 thousand tons of
wheat
Wheat is a grass widely cultivated for its seed, a cereal grain that is a worldwide staple food. The many species of wheat together make up the genus ''Triticum'' ; the most widely grown is common wheat (''T. aestivum''). The archaeologi ...
;
* 245 thousand tons of
soybean
The soybean, soy bean, or soya bean (''Glycine max'') is a species of legume native to East Asia, widely grown for its edible bean, which has numerous uses.
Traditional unfermented food uses of soybeans include soy milk, from which tofu an ...
;
* 227 thousand tons of
barley
Barley (''Hordeum vulgare''), a member of the grass family, is a major cereal grain grown in temperate climates globally. It was one of the first cultivated grains, particularly in Eurasia as early as 10,000 years ago. Globally 70% of barley pr ...
;
* 182 thousand tons of
potato
The potato is a starchy food, a tuber of the plant ''Solanum tuberosum'' and is a root vegetable native to the Americas. The plant is a perennial in the nightshade family Solanaceae.
Wild potato species can be found from the southern Unit ...
;
* 155 thousand tons of
rapeseed;
* 146 thousand tons of
grape
A grape is a fruit, botanically a berry, of the deciduous woody vines of the flowering plant genus ''Vitis''. Grapes are a non- climacteric type of fruit, generally occurring in clusters.
The cultivation of grapes began perhaps 8,000 years ago, ...
;
* 110 thousand tons of
sunflower seed
The sunflower seed is the seed of the sunflower ('' Helianthus annuus''). There are three types of commonly used sunflower seeds: linoleic (most common), high oleic, and sunflower oil seeds. Each variety has its own unique levels of monounsat ...
;
In addition to smaller productions of other agricultural products, like
apple
An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple fruit tree, trees are agriculture, cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, wh ...
(93 thousand tons),
triticale (62 thousand tons) and
olive
The olive, botanical name ''Olea europaea'', meaning 'European olive' in Latin, is a species of small tree or shrub in the family Oleaceae, found traditionally in the Mediterranean Basin. When in shrub form, it is known as ''Olea europaea'' ...
(28 thousand tons).
File:Boškarin.JPG, Boškarin cattle.
File:Fields near Metkovic 4.jpg, Plantations in the fertile Neretva
The Neretva ( sr-cyrl, Неретва, ), also known as Narenta, is one of the largest rivers of the eastern part of the Adriatic basin. Four HE power-plants with large dams (higher than 150,5 metres) provide flood protection, power and water s ...
valley.
File:Vineyards of Istria (Croatia).jpg, Vineyards of Istria
Istria ( ; Croatian language, Croatian and Slovene language, Slovene: ; ist, Eîstria; Istro-Romanian language, Istro-Romanian, Italian language, Italian and Venetian language, Venetian: ; formerly in Latin and in Ancient Greek) is the larges ...
.
Infrastructure
Transport
![Autocesta Zagreb-Split kod Jezerana (Croatia)](https://upload.wikimedia.org/wikipedia/commons/1/17/Autocesta_Zagreb-Split_kod_Jezerana_%28Croatia%29.JPG)
The highlight of Croatia's recent infrastructure developments is its rapidly developed
motorway network, largely built in the late 1990s and especially in the 2000s. By January 2022, Croatia had completed more than of motorways, connecting Zagreb to most other regions and following various
European routes and four
Pan-European corridors.
The busiest motorways are the
A1, connecting Zagreb to Split and the
A3, passing east–west through northwest Croatia and Slavonia.
A widespread network of
state roads in Croatia acts as motorway
feeder roads while connecting all major settlements in the country. The high quality and safety levels of the Croatian motorway network were tested and confirmed by several EuroTAP and EuroTest programs.
Croatia has an
extensive rail network spanning , including of electrified railways and of double track railways. The most significant railways in Croatia are found within the Pan-European transport corridors Vb and X connecting Rijeka to Budapest and Ljubljana to Belgrade, both via Zagreb.
All rail services are operated by Croatian Railways.
There are
international airport
An international airport is an airport with customs and border control facilities enabling passengers to travel between countries around the world. International airports are usually larger than domestic airports and they must feature longer ...
s in
Zagreb
Zagreb ( , , , ) is the capital (political), capital and List of cities and towns in Croatia#List of cities and towns, largest city of Croatia. It is in the Northern Croatia, northwest of the country, along the Sava river, at the southern slop ...
,
Zadar
Zadar ( , ; historically known as Zara (from Venetian and Italian: ); see also other names), is the oldest continuously inhabited Croatian city. It is situated on the Adriatic Sea, at the northwestern part of Ravni Kotari region. Zadar serv ...
,
Split,
Dubrovnik
Dubrovnik (), historically known as Ragusa (; see notes on naming), is a city on the Adriatic Sea in the region of Dalmatia, in the southeastern semi-exclave of Croatia. It is one of the most prominent tourist destinations in the Mediterran ...
,
Rijeka
Rijeka ( , , ; also known as Fiume hu, Fiume, it, Fiume ; local Chakavian: ''Reka''; german: Sankt Veit am Flaum; sl, Reka) is the principal seaport and the third-largest city in Croatia (after Zagreb and Split). It is located in Primor ...
,
Osijek
Osijek () is the fourth-largest city in Croatia, with a population of 96,848 in 2021. It is the largest city and the economic and cultural centre of the eastern Croatian region of Slavonia, as well as the administrative centre of Osijek-Baranja ...
and
Pula
Pula (; also known as Pola, it, Pola , hu, Pòla, Venetian language, Venetian; ''Pola''; Istriot language, Istriot: ''Puola'', Slovene language, Slovene: ''Pulj'') is the largest city in Istria County, Croatia, and the List of cities and town ...
.
As of January 2011, Croatia complies with
International Civil Aviation Organization
The International Civil Aviation Organization (ICAO, ) is a specialized agency of the United Nations that coordinates the principles and techniques of international air navigation, and fosters the planning and development of international sc ...
aviation safety standards and the
Federal Aviation Administration
The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic m ...
upgraded it to Category 1 rating.
The busiest cargo
seaport
A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Ham ...
in Croatia is the
Port of Rijeka and the busiest passenger ports are
Split and Zadar.
In addition to those, a large number of minor ports serve an extensive system of ferries connecting numerous islands and coastal cities in addition to ferry lines to several cities in Italy.
The largest river port is Vukovar, located on the Danube, representing the nation's outlet to the Pan-European transport corridor VII.
Energy
![Hidrocentrala Dubrava - zgrada](https://upload.wikimedia.org/wikipedia/commons/5/53/Hidrocentrala_Dubrava_-_zgrada.jpg)
There are of crude oil pipelines in Croatia, connecting the Port of Rijeka oil terminal with refineries in Rijeka and Sisak, as well as several transhipment terminals. The system has a capacity of 20 million tonnes per year.
The natural gas transportation system comprises of trunk and regional natural gas pipelines, and more than 300 associated structures, connecting production rigs, the Okoli natural gas storage facility, 27 end-users and 37 distribution systems.
Croatian production of energy sources covers 85% of nationwide natural gas demand and 19% of oil demand. In 2008, 47.6% of Croatia's primary energy production structure comprised use of natural gas (47.7%), crude oil (18.0%), fuel wood (8.4%), hydro power (25.4%) and other renewable energy sources (0.5%). In 2009, net total electrical power production in Croatia reached 12,725 GWh and Croatia imported 28.5% of its electric power energy needs.
The bulk of Croatian imports are supplied by the
Krško Nuclear Power Plant in Slovenia, 50% owned by
Hrvatska elektroprivreda, providing 15% of Croatia's electricity.
Electricity:
* ''production:'' 12.875 GWh (2020)
* ''consumption:'' 17.514 GWh (2020)
* ''exports:'' 5.852 GWh (2020)
* ''imports:'' 10.491 GWh (2020)
Electricity – production by source:
* ''hydro:'' 36% (2021)
* ''termo:'' 19% (2021)
* ''nuclear:'' 14% (2021)
* ''renewable:'' 7% (2021)
* ''import:'' 24% (2021)
Crude oil:
* ''production:'' 645 thousand tons (2020)
* ''consumption:'' 2.666 million tons (2020)
* ''exports:'' 555 thousand tons (2020)
* ''imports:'' 2.49 million tons (2020)
* ''proved reserves:'' (2017)
Natural gas:
* ''production:'' 849 million m³ (2020)
* ''consumption:'' 3.041 billion m³ (2020)
* ''exports:'' 52 million m³ (2020)
* ''imports:'' 2.144 billion m³ (2020)
* ''proved reserves:'' 21.094 billion m³ (2019)
Stock exchanges
![Panorama-Eurotower, Cibona, HOTO](https://upload.wikimedia.org/wikipedia/commons/f/f6/Panorama-Eurotower%2C_Cibona%2C_HOTO.JPG)
*
Zagreb Stock Exchange
Banking
![Banco Nacional, Zagreb, Croacia, 2014-04-20, DD 01](https://upload.wikimedia.org/wikipedia/commons/a/a3/Banco_Nacional%2C_Zagreb%2C_Croacia%2C_2014-04-20%2C_DD_01.JPG)
Central bank:
*
Croatian National Bank
Major commercial banks:
*
Zagrebačka banka
Zagrebačka banka d.d. is the largest bank in Croatia, owned by UniCredit group of Italy. It was the first Croatian bank to become fully privatised in 1989 and the first one to be listed at the Zagreb Stock Exchange in 1995. It is one of 24 compan ...
(owned by
UniCredit from Italy)
*
Privredna banka Zagreb
Privredna banka Zagreb or PBZ is the second largest bank in Croatia (after Zagrebačka banka), owned by Intesa Sanpaolo group of Italy. It is listed on the Zagreb Stock Exchange and is one of 24 companies included in the CROBEX share index.
PBZ ...
(owned by
Intesa Sanpaolo from Italy)
*
Hrvatska poštanska banka
Hrvatska poštanska banka d.d. or HPB is the largest Croatian-owned bank in the country and ranks 6th in Croatia in terms of total assets, worth around HRK 21.25 billion.
The bank was founded in October 1991 by Hrvatska pošta, the Croatian nati ...
*
OTP Banka (owned by
OTP Bank
OTP Bank Group is the largest commercial bank of Hungary and one of the largest independent financial service providers in Central and Eastern Europe and with banking services for private individuals and corporate clients. The OTP Group comprise ...
from Hungary)
*
Raiffeisen Bank Austria Raiffeisen may refer to:
* Raiffeisen (Albania), a bank
* Raiffeisen (Switzerland), a bank
* Raiffeisenbank, cooperative banks in several European countries
* Friedrich Wilhelm Raiffeisen
Friedrich Wilhelm Raiffeisen (30 March 1818 – 11 March 18 ...
(owned by
Raiffeisen from Austria)
*
Erste & Steiermärkische Bank (former Riječka banka, owned by
Erste Bank from Austria)
Central Budget
Overall Budget:
''Revenues:''
* 163.69 billion kuna ($24.72 billion), 2022
''Expenditures:''
* 173.82 billion kuna ($26.25 billion), 2022
Expenditure by ministries for 2022:
*
Labor and Pension System, Family and Social Policy – 55.21 billion kuna
*
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
– 50.87 billion kuna
*
Science and Education – 23.25 billion kuna
*
Health
Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...
– 16.06 billion kuna
*
Maritime Affairs, Transport and Infrastructure – 10.23 billion kuna
*
Economy and Sustainable Development – 9.82 billion kuna
*
Agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
– 8.66 billion kuna
*
Interior
Interior may refer to:
Arts and media
* ''Interior'' (Degas) (also known as ''The Rape''), painting by Edgar Degas
* ''Interior'' (play), 1895 play by Belgian playwright Maurice Maeterlinck
* ''The Interior'' (novel), by Lisa See
* Interior de ...
– 5.96 billion kuna
*
Defence
Defense or defence may refer to:
Tactical, martial, and political acts or groups
* Defense (military), forces primarily intended for warfare
* Civil defense, the organizing of civilians to deal with emergencies or enemy attacks
* Defense industr ...
– 6.91 billion kuna
*
Justice and Public Administration – 3.51 billion kuna
*
Construction, Physical Planning and State Property – 2.98 billion kuna
*
Regional Development and EU funds – 2.09 billion kuna
*
Veterans' Affairs – 1.21 billion kuna
*
Culture and Media – 2.26 billion kuna
*
Foreign and European Affairs – 0.87 billion kuna
*
Tourism and Sport – 0.63 billion kuna
Economic indicators
The following table shows the main economic indicators for the period 2000–2021 according to the
Croatian Bureau of Statistics.
''From the
CIA World Factbook
''The World Factbook'', also known as the ''CIA World Factbook'', is a reference resource produced by the Central Intelligence Agency (CIA) with almanac-style information about the countries of the world. The official print version is available ...
2021.''
Real GDP (purchasing power parity):
$107.11 billion (2020 est.)
Real GDP growth rate:
2.94% (2019 est.)
Real GDP per capita:
$26,500 (2020 est.)
GDP (official exchange rate): $60,687 billion (2019 est.)
Labor force:
1.656 million (2020 est.)
Labor force – by occupation:
agriculture 1.9%, industry 27.3%, services 70.8% (2017)
Unemployment rate:
8.07% (2019 est.)
Population below poverty line:
18.3% (2018 est.)
Household income or consumption by percentage share:
''lowest 10%:''
2.7%
''highest 10%:''
23%
(2015 est.)
Distribution of family income –
Gini index:
30.4 (2017)
Inflation rate (consumer prices):
0.7% (2019 est.)
Budget:
''revenues:''
$25.24 billion (2017 est.)
''expenditures:''
$24.83 billion, (2017 est.)
Public debt:
77.8% of GDP (2017 est.)
Taxes and revenues: 46.1% (of GDP) (2017 est.)
Agricultural products:
maize
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
,
wheat
Wheat is a grass widely cultivated for its seed, a cereal grain that is a worldwide staple food. The many species of wheat together make up the genus ''Triticum'' ; the most widely grown is common wheat (''T. aestivum''). The archaeologi ...
,
sugar beet
A sugar beet is a plant whose root contains a high concentration of sucrose and which is grown commercially for sugar production. In plant breeding, it is known as the Altissima cultivar group of the common beet (''Beta vulgaris''). Together wi ...
,
milk
Milk is a white liquid food produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals (including breastfed human infants) before they are able to digestion, digest solid food. Immune factors and immune ...
,
barley
Barley (''Hordeum vulgare''), a member of the grass family, is a major cereal grain grown in temperate climates globally. It was one of the first cultivated grains, particularly in Eurasia as early as 10,000 years ago. Globally 70% of barley pr ...
,
soybean
The soybean, soy bean, or soya bean (''Glycine max'') is a species of legume native to East Asia, widely grown for its edible bean, which has numerous uses.
Traditional unfermented food uses of soybeans include soy milk, from which tofu an ...
s,
potato
The potato is a starchy food, a tuber of the plant ''Solanum tuberosum'' and is a root vegetable native to the Americas. The plant is a perennial in the nightshade family Solanaceae.
Wild potato species can be found from the southern Unit ...
es,
pork
Pork is the culinary name for the meat of the domestic pig (''Sus domesticus''). It is the most commonly consumed meat worldwide, with evidence of pig husbandry dating back to 5000 BCE.
Pork is eaten both freshly cooked and preserved; ...
,
grape
A grape is a fruit, botanically a berry, of the deciduous woody vines of the flowering plant genus ''Vitis''. Grapes are a non- climacteric type of fruit, generally occurring in clusters.
The cultivation of grapes began perhaps 8,000 years ago, ...
s,
sunflower seed
The sunflower seed is the seed of the sunflower ('' Helianthus annuus''). There are three types of commonly used sunflower seeds: linoleic (most common), high oleic, and sunflower oil seeds. Each variety has its own unique levels of monounsat ...
Industries:
chemicals and
plastic
Plastics are a wide range of synthetic or semi-synthetic materials that use polymers as a main ingredient. Their plasticity makes it possible for plastics to be moulded, extruded or pressed into solid objects of various shapes. This adaptab ...
s,
machine tool
A machine tool is a machine for handling or machining metal or other rigid materials, usually by cutting, boring, grinding, shearing, or other forms of deformations. Machine tools employ some sort of tool that does the cutting or shaping. All m ...
s, fabricated metal,
electronics
The field of electronics is a branch of physics and electrical engineering that deals with the emission, behaviour and effects of electrons using electronic devices. Electronics uses active devices to control electron flow by amplification ...
,
pig iron
Pig iron, also known as crude iron, is an intermediate product of the iron industry in the production of steel which is obtained by smelting iron ore in a blast furnace. Pig iron has a high carbon content, typically 3.8–4.7%, along with silic ...
and rolled steel products,
aluminum
Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It has ...
,
paper
Paper is a thin sheet material produced by mechanically or chemically processing cellulose fibres derived from wood, rags, grasses or other vegetable sources in water, draining the water through fine mesh leaving the fibre evenly distributed ...
,
wood products
Wood is a porous and fibrous structural tissue found in the stems and roots of trees and other woody plants. It is an organic materiala natural composite of cellulose fibers that are strong in tension and embedded in a matrix of lignin t ...
,
construction materials,
textile
Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
s,
shipbuilding
Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to befor ...
,
petroleum
Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...
and
petroleum refining, food and beverages,
tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
Industrial production growth rate:
1.2% (2017 est.)
Current account balance:
$1.597 billion (2019 est.)
Exports:
$23.66 billion (2020 est.)
Exports – commodities:
refined petroleum, packaged medicines, cars, medical cultures/vaccines,
lumber
Lumber is wood that has been processed into dimensional lumber, including beams and planks or boards, a stage in the process of wood production. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, wi ...
(2019)
Exports – partners:
Italy 13%,
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
13%,
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
10%,
Bosnia and Herzegovina
Bosnia and Herzegovina ( sh, / , ), abbreviated BiH () or B&H, sometimes called Bosnia–Herzegovina and often known informally as Bosnia, is a country at the crossroads of south and southeast Europe, located in the Balkans. Bosnia and H ...
9%,
Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
6%,
Serbia
Serbia (, ; Serbian language, Serbian: , , ), officially the Republic of Serbia (Serbian language, Serbian: , , ), is a landlocked country in Southeast Europe, Southeastern and Central Europe, situated at the crossroads of the Pannonian Bas ...
5% (2019)
Imports:
$27.59 billion (2020 est.)
Imports – commodities:
crude petroleum, cars, refined petroleum, packaged medicines,
electricity
Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described ...
(2019)
Imports – partners:
Germany 14%,
Italy 14%,
Slovenia 11%,
Hungary 7%,
Austria 6%
(2019)
Reserves of foreign exchange and gold:
$18.82 billion (31 December 2017 est.)
Debt – external:
$48.263 billion (2015 est.)
Currency:
kuna
Kuna may refer to:
Places
* Kuna, Idaho, a town in the United States
** Kuna Caves, a lava tube in Idaho
* Kuna Peak, a mountain in California
* , a village in the Orebić municipality, Croatia
* , a village in the Konavle municipality, Croatia ...
(HRK)
Exchange rates:
kuna per US$1 –
6.2474 (2020)
Gross Domestic Product
See also
*
Economy of Europe
*
Areas of Special State Concern (Croatia)
Areas of Special State Concern or ASSC ( hr, Područja od posebne državne skrbi, PPDS) in Croatia are areas of relative underdevelopment compared to the rest of the country in which Croatian Government implements certain policies aimed at achievi ...
*
Croatia and the euro
Croatia adopted the euro as its currency on 1 January 2023, becoming the 20th member state of the eurozone. A fixed conversion rate was set at 1 € = 7.5345 kn.
Croatia's previous currency, the kuna, used the euro (and prior t ...
*
Croatia and the World Bank
Croatia joined the World Bank in 1993, two years after declaring independence from the Socialist Federal Republic of Yugoslavia in 1991. The World Bank's projects from the mid-1990s to the mid-2000s primarily focused on infrastructural and environ ...
*
Croatian brands
*
Taxation in Croatia
Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017. The most important revenue sources are income taxes, social security contributions, corporate tax and the value adde ...
References
External links
Croatian National BankCroatian Chamber of EconomyGDP per inhabitant varied by one to six across the EU27 Member States* Tariffs applied by Croatia as provided by ITC'
ITCMarket Access Map, an online database of customs tariffs and market requirements.
{{Economy of Europe
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...