Croatia Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Though still one of the wealthiest of the former Yugoslav republics, Croatia’s economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve 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 remained tame and the currency, the kuna, stable.

 

Croatia experienced an abrupt slowdown in the economy in 2008; economic growth was stagnant or negative in each year between 2009 and 2014, but has picked up since the third quarter of 2014, ending 2017 with an average of 2.8% growth. Challenges remain including uneven regional development, a difficult investment climate, an inefficient judiciary, and loss of educated young professionals seeking higher salaries elsewhere in the EU. In 2016, Croatia revised its tax code to stimulate growth from domestic consumption and foreign investment. Income tax reduction began in 2017, and in 2018 various business costs were removed from income tax calculations. At the start of 2018, the government announced its economic reform plan, slated for implementation in 2019.

 

Tourism is one of the main pillars of the Croatian economy, comprising 19.6% of Croatia’s GDP. Croatia is working to become a regional energy hub, and is undertaking plans to open a floating liquefied natural gas (LNG) regasification terminal by the end of 2019 or early in 2020 to import LNG for re-distribution in southeast Europe.

 

Croatia joined the EU on July 1, 2013, following a decade-long accession process. Croatia has developed a plan for Eurozone accession, and the government projects Croatia will adopt the Euro by 2024. In 2017, the Croatian government decreased public debt to 78% of GDP, from an all-time high of 84% in 2014, and realized a 0.8% budget surplus - the first surplus since independence in 1991. The government has also sought to accelerate privatization of non-strategic assets with mixed success. Croatia’s economic recovery is still somewhat fragile; Croatia’s largest private company narrowly avoided collapse in 2017, thanks to a capital infusion from an American investor. Restructuring is ongoing, and projected to finish by mid-July 2018.

Real GDP (purchasing power parity)

$107.11 billion (2020 est.)

$116.89 billion (2019 est.)

$113.64 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.94% (2019 est.)

2.7% (2018 est.)

3.14% (2017 est.)

Real GDP per capita

$26,500 (2020 est.)

$28,800 (2019 est.)

$27,800 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$60.687 billion (2019 est.)

Inflation rate (consumer prices)

0.7% (2019 est.)

1.4% (2018 est.)

1.1% (2017 est.)

Credit ratings

Fitch rating: BBB- (2019)

Moody's rating: Ba1 (2020)

Standard & Poors rating: BBB- (2019)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 3.7% (2017 est.)

industry: 26.2% (2017 est.)

services: 70.1% (2017 est.)

GDP - composition, by end use

household consumption: 57.3% (2017 est.)

government consumption: 19.5% (2017 est.)

investment in fixed capital: 20% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 51.1% (2017 est.)

imports of goods and services: -48.8% (2017 est.)

Agricultural products

maize, wheat, sugar beet, milk, barley, soybeans, potatoes, pork, grapes, sunflower seed

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

1.2% (2017 est.)

Labor force

1.656 million (2020 est.)

Labor force - by occupation

agriculture: 1.9%

industry: 27.3%

services: 70.8% (2017 est.)

Unemployment rate

8.07% (2019 est.)

9.86% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 21.9%

male: 18.9%

female: 26.4% (2021 est.)

Population below poverty line

18.3% (2018 est.)

Gini Index coefficient - distribution of family income

30.4 (2017 est.)

32.1 (2014 est.)

Household income or consumption by percentage share

lowest 10%: 2.7%

highest 10%: 23% (2015 est.)

Budget

revenues: 25.24 billion (2017 est.)

expenditures: 24.83 billion (2017 est.)

Budget surplus (+) or deficit (-)

0.8% (of GDP) (2017 est.)

Public debt

77.8% of GDP (2017 est.)

82.3% of GDP (2016 est.)

Taxes and other revenues

46.1% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

$1.597 billion (2019 est.)

$1 billion (2018 est.)

Exports

$23.66 billion (2020 est.)

$31.07 billion (2019 est.)

$30.71 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Italy 13%, Germany 13%, Slovenia 10%, Bosnia and Herzegovina 9%, Austria 6%, Serbia 5% (2019)

Exports - commodities

refined petroleum, packaged medicines, cars, medical cultures/vaccines, lumber (2019)

Imports

$27.59 billion (2020 est.) note: data are in current year dollars

$31.39 billion (2019 est.) note: data are in current year dollars

$31.32 billion (2018 est.) note: data are in current year dollars

Imports - partners

Italy 14%, Germany 14%, Slovenia 11%, Hungary 7%, Austria 6% (2019)

Imports - commodities

crude petroleum, cars, refined petroleum, packaged medicines, electricity (2019)

Reserves of foreign exchange and gold

$18.82 billion (31 December 2017 est.)

$14.24 billion (31 December 2016 est.)

Debt - external

$48.263 billion (2019 est.)

$51.176 billion (2018 est.)

Exchange rates

kuna (HRK) per US dollar -

6.2474 (2020 est.)

6.72075 (2019 est.)

6.48905 (2018 est.)

6.8583 (2014 est.)

5.7482 (2013 est.)

NOTE: The information regarding Croatia on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Croatia 2022 information contained here. All suggestions for corrections of any errors about Croatia 2022 should be addressed to the CIA or the source cited on each page.