Croatia Economy

Category: General Info

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Finding favorable investment possibilities is a continuous process. A precondition for that process is the existence of a favorable market, business and legal framework. For this reason many businessmen have chosen Croatia as a place to start their business operations.

Before the dissolution of Yugoslavia the Republic of Croatia after Slovenia was the most prosperous and industrialized area with a per capita output perhaps one-third above the Yugoslav average. Croatia faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges factories power lines buildings and houses; the large refugee and displaced population both Croatian and Bosnian; and the disruption of economic ties. Western aid and investment especially in the tourist and oil industries would help restore the economy. The government has been successful in some reform efforts?partially macroeconomic stabilization policies?and it has normalized relations with its creditors. Yet it still is struggling with privatization of large state enterprises and with bank reform.

GDP: purchasing power parity?$22.7 billion (1997 est.)

GDP?real growth rate: 4.4% (1997 est.)

GDP?per capita: purchasing power parity?$4 500 (1997 est.)

GDP?composition by sector:

agriculture: 12%

industry: 24%

services: 64% (1995 est.)

Inflation rate?consumer price index: 3.7% (1997 est.)

Labor force:

total: 1.444 million (1995)

by occupation: industry and mining 31.1% agriculture 4.3% government 19.1% (including education and health) other 45.5% (1993)

Unemployment rate: 15.9% (yearend 1997 est.)

Budget:

revenues: $5.3 billion

expenditures: $6.3 billion including capital expenditures of $78.5 million (1997 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: 0% (1995)

Electricity?capacity: 3.593 million kW (1995)

Electricity?production: 7.15 billion kWh (1995)

Electricity?consumption per capita: 2 315 kWh (1995)

Agriculture?products: wheat corn sugar beets sunflower seed alfalfa clover olives citrus grapes vegetables; livestock breeding dairy farming

Exports:

total value: $4.3 billion (f.o.b. 1997)

commodities: machinery and transport equipment 13.6% miscellaneous manufactures 27.6% chemicals 14.2% food and live animals 12.2% raw materials 6.1% fuels and lubricants 9.4% beverages and tobacco 2.7% (1993)

partners: Germany 22% Italy 21% Slovenia 18% (1994)

Imports:

total value: $9.1 billion (c.i.f. 1997)

commodities: machinery and transport equipment 23.1% fuels and lubricants 8.8% food and live animals 9.0% chemicals 14.2% miscellaneous manufactured articles 16.0% raw materials 3.5% beverages and tobacco 1.4% (1993)

partners: Germany 21% Italy 19% Slovenia 10% (1994)

Debt?external: $5.904 billion (October 1997)

Economic aid:

recipient: ODA $NA

note: IMF has given Croatia $192 million; World Bank has given Croatia $100 million

Currency: 1 Croatian kuna (HRK) = 100 lipas

Exchange rates: Croatian kuna per US$1?6.369 (January 1998) 6.101 (1997) 5.434 (1996) 5.230 (1995) 5.996 (1994) 3.577 (1993) current exchange rates

Fiscal year: calendar year