Croatia: Economy Overview

Once one of the wealthiest of the Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war as output collapsed and the country missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall.

Economy Overview

Between 2000 and 2007, Croatia's economic fortunes began to improve slowly, with moderate but steady GDP growth between 4% and 6% led by a rebound in tourism and credit-driven consumer spending. Inflation over the same period has remained tame and the currency, the kuna, stable. Nevertheless, difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit and uneven regional development. The state retains a large role in the economy, as privatization efforts often meet stiff public and political resistance. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the part of the public and lack of strong support from politicians. The EU accession process should accelerate fiscal and structural reform. While long term growth prospects for the economy remain strong, Croatia will face significant pressure as a result of the global financial crisis. Croatia's high foreign debt, anemic export sector, strained state budget, and over-reliance on tourism revenue will result in higher risk to economic stability over the medium term.

GDP (purchasing power parity):

$78.46 billion (2009 est.)
country comparison to the world: 76
$83.29 billion (2008 est.)
$81.34 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$67.7 billion (2009 est.)

GDP - real growth rate:

-5.8% (2009 est.)
country comparison to the world: 196
2.4% (2008 est.)
5.5% (2007 est.)

GDP - per capita (PPP):

$17,500 (2009 est.)
country comparison to the world: 67
$18,500 (2008 est.)
$18,100 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 6.7%
industry: 27.1%
services: 66.1% (2009 est.)

Labor force:

1,769 million (November 2009 est.)
country comparison to the world: 124

Labor force - by occupation:

agriculture: 5%
industry: 31.3%
services: 63.6% (2008)

Unemployment rate:

16.1% (2009 est.)
country comparison to the world: 157
13.5% (2008 est.)

Investment (gross fixed):

24.7% of GDP (2009 est.)
country comparison to the world: 46

Budget:

revenues: $20.99 billion
expenditures: $22.35 billion (2009 est.)

Inflation rate (consumer prices):

2.4% (2009 est.)
country comparison to the world: 86
6.1% (2008 est.)

Commercial bank prime lending rate:

11.55% (31 December 2009 est.)

Stock of domestic credit:

$45.5 billion (31 December 2009)
country comparison to the world: 62
$49.79 billion (31 December 2008)

Agriculture - products:

wheat, corn, sugar beets, sunflower seed, barley, alfalfa, clover, olives, citrus, grapes, soybeans, potatoes; livestock, dairy products

Industries:

chemicals and plastics, machine tools, fabricated metal, electronics, pig iron and rolled steel products, aluminum, paper, wood products, construction materials, textiles, shipbuilding, petroleum and petroleum refining, food and beverages, tourism

Industrial production growth rate:

-9.5% (2009 est.)
country comparison to the world: 138

Oil - production:

23,960 bbl/day (2009 est.)
country comparison to the world: 74

Natural gas - production:

2.847 billion cu m (2009 est.)
country comparison to the world: 56

Current account balance:

$-3.247 billion (2009 est.)
country comparison to the world: 162
$-6.251 billion (2008 est.)

Exports:

$10.72 billion (2009 est.)
country comparison to the world: 80
$14.46 billion (2008 est.)

Exports - commodities:

transport equipment, machinery, textiles, chemicals, foodstuffs, fuels

Exports - partners:

Italy 19.1%, Bosnia and Herzegovina 12.98%, Germany 11.06%, Slovenia 7.47%, Austria 5.44%, Serbia 5.41% (2009)

Imports:

$21 billion (2009 est.)
country comparison to the world: 66
$30.42 billion (2008 est.)

Imports - commodities:

machinery, transport and electrical equipment, chemicals, fuels and lubricants; foodstuffs

Imports - partners:

Italy 15.46%, Germany 13.57%, Russia 9.29%, China 6.83%, Slovenia 5.75%, Austria 5.04% (2009)

Debt - external:

$62.41 billion (31 December 2009 est.)
country comparison to the world: 48
$56.49 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$32.13 billion (31 December 2009 est.)
country comparison to the world: 59
$29.22 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$5.934 billion (31 December 2009 est.)
country comparison to the world: 55
$4.628 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook