Croatia Economy Profile 2008

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. Since 2000, however, Croatia's economic fortunes have begun 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.

GDP (purchasing power parity)

$69.44 billion (2007 est.)

GDP (official exchange rate)

$50.96 billion (2007 est.)

GDP - real growth rate

5.6% (2007 est.)

GDP - per capita (PPP)

$15,500 (2007 est.)

GDP - composition by sector

agriculture: 7.2%
industry: 32%
services: 60.7% (2007 est.)

Population below poverty line

11% (2003)

Household income or consumption by percentage share

lowest 10%: 3.4%
highest 10%: 24.5% (2003 est.)

Inflation rate (consumer prices)

2.2% (2007 est.)

Investment (gross fixed)

30.8% of GDP (2007 est.)

Labor force

1.714 million (2007 est.)

Labor force - by occupation

agriculture: 2.7%
industry: 32.8%
services: 64.5% (2004)

Unemployment rate

11.8% (2007 est.)

Distribution of family income - Gini index

29 (2001)

Budget

revenues: $22.46 billion
expenditures: $23.85 billion (2007 est.)

Public debt

45.6% of GDP (2007 est.)

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

6.5% (2007 est.)

Electricity - production

11.99 billion kWh (2005)

Electricity - consumption

14.97 billion kWh (2005)

Electricity - exports

3.634 billion kWh (2005)

Electricity - imports

8.746 billion kWh (2005)

Oil - production

27,190 bbl/day (2005 est.)

Oil - consumption

99,000 bbl/day (2005 est.)

Oil - imports

109,800 bbl/day (2004)

Oil - exports

40,930 bbl/day (2004)

Oil - proved reserves

69.14 million bbl (1 January 2006 est.)

Natural gas - production

1.477 billion cu m (2005 est.)

Natural gas - consumption

2.58 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

1.103 billion cu m (2005)

Natural gas - proved reserves

27.16 billion cu m (1 January 2006 est.)

Current Account Balance

-$3.836 billion (2007 est.)

Agriculture - products

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

Exports

$12.11 billion f.o.b. (2007 est.)

Exports - commodities

transport equipment, textiles, chemicals, foodstuffs, fuels

Exports - partners

Italy 23.1%, Bosnia and Herzegovina 12.7%, Germany 10.4%, Slovenia 8.3%, Austria 6.1% (2006)

Imports

$25.78 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

Italy 16.7%, Germany 14.5%, Russia 9.7%, Slovenia 6.8%, Austria 5.4%, China 5.3% (2006)

Reserves of foreign exchange and gold

$13.13 billion (31 December 2007 est.)

Debt - external

$41.56 billion (30 June 2007)

Stock of direct foreign investment - at home

$18.33 billion (2006 est.)

Stock of direct foreign investment - abroad

$2.878 billion (2006 est.)

Market value of publicly traded shares

$29.01 billion (2006)

Economic aid - recipient

ODA, $125.4 million (2005)

Currency (code)

kuna (HRK)

Exchange rates

kuna per US dollar - 5.3735 (2007), 5.8625 (2006), 5.9473 (2005), 6.0358 (2004), 6.7035 (2003)

Fiscal year

calendar year