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Croatia Economy Profile 2017

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Economy - overviewThough 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 and is slowly recovering; economic growth was stagnant or negative in each year since 2009, but picked up in 2015-16. Difficult problems still remain including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. In 2016, Croatia demonstrated a commitment to improving the business climate, including by simplifying its tax code, to stimulate growth from domestic consumption and foreign investment. Since at least 2016, Croatia has worked to become a regional energy player and plans to import liquefied natural gas through a prospective import terminal and pump natural gas to European consumers.

On 1 July 2013, Croatia joined the EU, following a decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism, with its currency effectively pegged to the euro, until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt, which triggered the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and the government also raised additional revenues through more stringent tax collection and by raising the value-added tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success.
GDP (purchasing power parity)$94.24 billion (2016 est.)
$92.48 billion (2015 est.)
$90.98 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$49.86 billion (2016 est.)
GDP - real growth rate1.9% (2016 est.)
1.6% (2015 est.)
-0.4% (2014 est.)
GDP - per capita (PPP)$22,400 (2016 est.)
$21,900 (2015 est.)
$21,500 (2014 est.)
note: data are in 2016 dollars
Gross national saving21.8% of GDP (2016 est.)
23.5% of GDP (2015 est.)
19% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 59.1%
government consumption: 19.3%
investment in fixed capital: 19.1%
investment in inventories: -0.4%
exports of goods and services: 50.8%
imports of goods and services: -47.9% (2016 est.)
GDP - composition by sectoragriculture: 4.2%
industry: 26.6%
services: 69.2% (2016 est.)
Population below poverty line19.5% (2014 est.)
Labor force1.61 million (2016 est.)
Labor force - by occupationagriculture: 1.9%
industry: 27.6%
services: 70.4% (2014)
Unemployment rate15.8% (2016 est.)
17.1% (2015 est.)
Unemployment, youth ages 15-24total: 45.5%
male: 44.9%
female: 46.4% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 3.3%
highest 10%: 27.5% (2008 est.)
Distribution of family income - Gini index32 (2010)
29 (1998)
Budgetrevenues: $21.47 billion
expenditures: $22.72 billion (2016 est.)
Taxes and other revenues43.1% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-2.5% of GDP (2016 est.)
Public debt88.3% of GDP (2016 est.)
86.7% of GDP (2015 est.)
Inflation rate (consumer prices)-1% (2016 est.)
-0.5% (2015 est.)
Central bank discount rate7% (31 December 2013)
7% (31 December 2012)
Commercial bank prime lending rate4.8% (31 December 2016 est.)
5.83% (31 December 2015 est.)
Stock of narrow money$10.85 billion (31 December 2016 est.)
$10.11 billion (31 December 2015 est.)
Stock of broad money$42.36 billion (31 December 2016 est.)
$41.1 billion (31 December 2015 est.)
Stock of domestic credit$40.07 billion (31 December 2016 est.)
$42.41 billion (31 December 2015 est.)
Market value of publicly traded shares$36.29 billion (31 December 2014 est.)
$33.75 billion (31 December 2013 est.)
$33.44 billion (31 December 2012 est.)
Agriculture - productsarable crops (wheat, corn, barley, sugar beet, sunflower, rapeseed, alfalfa, clover); vegetables (potatoes, cabbage, onion, tomato, pepper); fruits (apples, plum, mandarins, olives), grapes for wine; livestock (cattle, cows, pigs); dairy products
Industrieschemicals 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 rate3.5% (2016 est.)
Current Account Balance$1.961 billion (2016 est.)
$2.482 billion (2015 est.)
Exports$12.41 billion (2016 est.)
$11.91 billion (2015 est.)
Exports - commoditiestransport equipment, machinery, textiles, chemicals, foodstuffs, fuels
Exports - partnersItaly 13.4%, Slovenia 12.5%, Germany 11.4%, Bosnia and Herzegovina 9.9%, Austria 6.6%, Serbia 4.9% (2015)
Imports$19.98 billion (2016 est.)
$19.28 billion (2015 est.)
Imports - commoditiesmachinery, transport and electrical equipment; chemicals, fuels and lubricants; foodstuffs
Imports - partnersGermany 15.5%, Italy 13.1%, Slovenia 10.7%, Austria 9.2%, Hungary 7.8% (2015)
Reserves of foreign exchange and gold$14.46 billion (31 December 2016 est.)
$14.97 billion (31 December 2015 est.)
Debt - external$48.11 billion (31 December 2016 est.)
$50.88 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$41.17 billion (31 December 2016 est.)
$39.74 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$8.484 billion (31 December 2016 est.)
$8.05 billion (31 December 2015 est.)
Exchange rateskuna (HRK) per US dollar -
6.971 (2016 est.)
6.8583 (2015 est.)
6.8583 (2014 est.)
5.7482 (2013 est.)
5.85 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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