The Croatian economy is modern in that the
service sector represents just over two-thirds of the
gross domestic product. The most dynamic part is tourism
that has grown rapidly in the 21st century. At the same
time, agriculture still accounts for a relatively large
part of the economy.
Tourism, which was significant already during the
Yugoslav era, accounts for around one-fifth of both GDP
and jobs in the country. The export industry has weak
competitiveness, partly because of the relatively low
level of education of the labor force.
Major imports by Croatia, covering a full list of top products imported by the country and trade value for each product category.
Croatia was a relatively rich part of former
Yugoslavia. But the 1990s war led to major loss of
production, destroyed infrastructure and costs
associated with the large refugee flows. At the turn of
the millennium, a period of steady growth of around 5
percent per year began. Growth was mainly based on a
boost in the tourism industry and increased private
consumption, which was largely based on favorable loans.
Extensive borrowing in the international loan market
contributed to Croatia being hit hard when the
international financial crisis hit in 2008. The economy
shrank and as it was about to begin to recover, the
crisis in the euro area countries came. Only in 2015 was
growth positive again. The budget deficit had then been
more than 5 percent of GDP for six years and the central
government's share of GDP had more than doubled to 84
percent. Growth has continued to be above the zero line,
but has not reached the same level as before the crisis,
and the central government's share of GDP has declined
Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including HRV which represents the country of Croatia.
The sharp downturn dramatically changed economic
forecasts and increased the pressure on reforms. The
previously good domestic demand was weakened and capital
inflows hampered. The government tried to deal with the
crisis through changes in labor law and pension systems,
as well as through continued sales of government assets.
Croatia's economic policy has been characterized by
its efforts to adapt to the EU. Among other things, the
Union has called for privatization and more effective
anti-corruption measures. Many of the former state-owned
companies have been sold, but the process is slow.
Croatia is behind many of the other eastern and central
European countries in the privatization and
restructuring of state-owned companies. The sale has
also been surrounded by corruption scandals.
FACTS - FINANCE
GDP per person
US $ 14,869 (2018)
US $ 60,806 million (2018)
2.6 percent (2018)
Agriculture's share of GDP
2.9 percent (2018)
Manufacturing industry's share of GDP
11.9 percent (2018)
The service sector's share of GDP
58.0 percent (2018)
1.0 percent (2019)
Government debt's share of GDP
74.6 percent (2018)
US $ 14 428 million (2018)
US $ 25,404 million (2018)
US $ 1,459 million (2018)
Commodity trade's share of GDP
75 percent (2018)
Main export goods
machinery and means of transport, workshop products,
chemical products, minerals, fuel and lubricants
Largest trading partner
Italy, Germany, Bosnia and Herzegovina, Slovenia,
Former Minister of Defense Berislav Rončević is sentenced to four years in
prison for abuse of power during his 2003-2008 ministerial term.
Sanader is arrested
Former Prime Minister Sanader leaves the country shortly before Parliament
rescinds his prosecution immunity. But he was arrested the next day in Austria,
after an international arrest warrant expired on charges of corruption. Sanader
was allowed back in parliament in October, which was politically wanted because
he was excluded from HDZ. He is extradited to Croatia in July 2011.
Disbelief motion against the government
The government manages a distrust vote that the Social Democrats have
proclaimed with reference to deterioration in the economy.
State visit to Serbia
President Josipović visits Serbia and meets his Serbian colleague Boris
Tadić. It is the first presidential visit since the war in the 1990s, and the
two leaders now emphasize cooperation and dialogue. A few months later, Tadić
comes on a response visit to Croatia and then apologizes during a visit to
Vukovar that the Serbian Yugoslav army employed a massacre of 260 people
following the conquest of the city.
Coalition party jumps off
The Social Liberal Party HSLS leaves the government coalition, which
nevertheless has enough support in Parliament to remain.
Roman schoolchildren are discriminated against
The European Court of Human Rights states that Croatia discriminates against
Roma schoolchildren by putting them in classes with only Roma. The state is
ordered to pay damages to students who have taken the case to court.
SDP's Ivo Josipović wins presidential election
In the second round of the presidential election, the Social Democrats
candidate, Professor of Law Ivo Josipović, wins with 60 percent of the vote over
Milan Bandić, Zagreb mayor (former Social Democrat, now independent). In the
first round held in December, Josipović got 32 percent against 15 for Bandić and
12 percent for HDZ candidate Andrija Hebrang. Josipović takes office in
Sanader is excluded from the party
Ivo Sanader, who left the Prime Minister's post in July, is excluded from his
party HDZ, after he criticized the successor Kosor's policy and stated that he
intends to come back into politics.