Croatia Economy Profile 2009

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. Between 2000 and 2007, however, 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)

$82.39 billion (2008 est.)
$80.46 billion (2007 est.)
$76.26 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$69.33 billion (2008 est.)

GDP - real growth rate

2.4% (2008 est.)
5.5% (2007 est.)
4.7% (2006 est.)

GDP - per capita (PPP)

$18,300 (2008 est.)
$17,900 (2007 est.)
$17,000 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 6%
industry: 27.7%
services: 66.3% (2008 est.)

Population below poverty line

11% (2003)

Labor force

1.731 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

13.7% (2008 est.)
11.8% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 23.1% (2005 est.)

Distribution of family income - Gini index

29 (2008)
29 (1998)

Investment (gross fixed)

31.1% of GDP (2008 est.)

Budget

revenues: $26.86 billion
expenditures: $28.54 billion (2008 est.)

Public debt

46.8% of GDP (2008 est.)
41.7% of GDP (2004 est.)

Inflation rate (consumer prices)

6.1% (2008 est.)
4.5% (2007 est.)

Central bank discount rate

9% (31 December 2008)
9% (31 December 2007)

Commercial bank prime lending rate

9.33% (31 December 2008)

Stock of money

$10.71 billion (31 December 2008)
$11.61 billion (31 December 2007)

Stock of quasi money

$33.17 billion (31 December 2008)
$31.86 billion (31 December 2007)

Stock of domestic credit

$49.79 billion (31 December 2008)
$45.7 billion (31 December 2007)

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

1.7% (2008 est.)

Electricity - production

12.25 billion kWh (2007)

Electricity - production by source

fossil fuel: 33.6%
hydro: 66%
nuclear: 0%
other: 0.4% (2001)

Electricity - consumption

18.61 billion kWh (2007)

Electricity - exports

1.451 billion kWh (2007)

Electricity - imports

7.511 billion kWh (2007)

Oil - production

17,580 bbl/day (2007 est.)

Oil - consumption

101,200 bbl/day (2007 est.)

Oil - imports

83,800 bbl/day (2007)

Oil - exports

0 bbl/day (2007)

Oil - proved reserves

79.15 million bbl (1 January 2008 est.)

Natural gas - production

2.892 billion cu m (2007)

Natural gas - consumption

3.3 billion cu m (2007)

Natural gas - exports

751.7 million cu m (2007)

Natural gas - imports

1.055 billion cu m (2007)

Natural gas - proved reserves

40.9 billion cu m (1 January 2008 est.)

Current Account Balance

-$5.779 billion (2008 est.)
-$4.447 billion (2007 est.)

Agriculture - products

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

Exports

$14.69 billion (2008 est.)
$12.62 billion (2007 est.)

Exports - commodities

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

Exports - partners

Italy 18.9%, Bosnia and Herzegovina 15.3%, Germany 10.7%, Slovenia 7.7%, Austria 5.7% (2008)

Imports

$30.74 billion (2008 est.)
$25.56 billion (2007 est.)

Imports - commodities

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

Imports - partners

Italy 17.1%, Germany 13.4%, Russia 10.5%, China 6.1%, Slovenia 5.6%, Austria 4.9% (2008)

Reserves of foreign exchange and gold

$12.96 billion (31 December 2008 est.)
$13.67 billion (31 December 2007 est.)

Debt - external

$54.79 billion (31 December 2008)
$48.93 billion (31 December 2007)

Stock of direct foreign investment - at home

$27.17 billion (31 December 2008 est.)
$23.17 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$3.374 billion (31 December 2008 est.)
$3.124 billion (31 December 2007 est.)

Market value of publicly traded shares

$26.79 billion (31 December 2008)
$65.98 billion (31 December 2007)
$29.01 billion (31 December 2006)

Economic aid - recipient

ODA, $125.4 million (2005)

Currency (code)

kuna (HRK)

Currency (code)

HRK

Exchange rates

kuna (HRK) per US dollar - 4.98 (2008 est.), 5.3735 (2007), 5.8625 (2006), 5.9473 (2005), 6.0358 (2004)

Fiscal year

calendar year