GENERAL ECONOMIC PROFILE OF CROATIA

MAIN ECONOMIC INDICATORS

Croatia

2000

 2001

 2002 2003

Total area (sq. km)

56,542

56,542

 56,542 56,542

Population (million)

4.55

4.55

 4.4

4.42 (July 2003 est.)

GDP (USD billion) 

19.02

20.7 

 22.4 N/A

GDP per capita (in current USD)

4,206

4,203

 5,057 N/A

Real GDP growth 

3.70%

4.20 %

 5.20 N/A

Retail Price Inflation

7.40%

2.60%

 2.30% N/A

Foreign exchange reserves of the Croatian National Bank (USD billion) 

3.52

4.01

 5.90 N/A

Foreign debt (USD billion)

10.80

11.13

15.40

N/A

Commodity exports (USD billion)

4.43

3.01

4.90

N/A

Commodity imports (USD billion)

7.92

 6.03

10.7

N/A

Annual rate of industrial output

1.7%

 5.5%

N/A

N/A

Foreign investment (USD million)

1,008.64

1,559.43

980.51

236.54 (Q1 only)

*N/A: Data not available

Source: Central Bureau of Statistics, Croatian National Bank, Ministry of Finance


Since Croatia gained its independence 13 years ago, it has achieved significant progress in developing market economy and positioning itself regionally. Croatia achieved macroeconomic stability, with a low average inflation from 1997 to the first half of 2001) of around 4.94% annually. Croatia became a member of:

  • Council of Europe (October 1996)  

  • NATO's Partnership for Peace (May 2000)

  • World Trade Organization (November 2000)

Throughout 2003, improved access to foreign markets strengthened security as region and domestic policy efforts caused confidence for Croatian market to remain high. Wide-ranging and deep reforms include:

  • Fiscal reforms (multi-year budget framework)

  • Social sector reforms (Pension, Health Care, Social Security)

  • Energy sector reforms and privatization of major publicly owned companies (Croatian Electric Power Company, The Energy Enterprise, Croatian Telecommunication Company) 

Significant trade and investment opportunities are possible throughout Croatia's principal growth sectors: energy, tourism, construction, transportation and telecommunications. Banking legislation resulted in restructuring and consolidation of that sector. That base generated substantial foreign investment and strategic partnership for Croatia's major banks. 

Total Croatian foreign trade exchange in 2000 was USD 12.3  billion. 57% of Croatia's total commodity exchange is with the European Union and EFTA countries. The most important countries in commodity exchange with Croatia in 2000 and August 2001 were Italy (19%) Germany (16%) and  Slovenia (8%). 

Croatia's democratic coalition Government, elected in January 2000, tends to develop Croatia as a civil, economically strong and democratic society. It has been undertaking serious economic reforms characterized by:

  • Aggressive privatization

  • Reduction in subsidies to public enterprises

  • Introduction of anticorruption legislation

  • Active measures to support foreign investment through incentive laws 

  • Establishing government offices to work with foreign investors, encouraging their participation in privatization tenders

Economic performance expectations for 2004 are strong.  Analysts expect further economic growth, disinflation and more modest foreign reserve gains.