Economy of Croatia
The economy of Croatia is a developed social market economy. It is one of the largest economies in Southeast Europe by nominal gross domestic product (GDP). It is an open economy with accommodative foreign policy, highly dependent on international trade in Europe. Within Croatia, economic development varies among its counties, with strongest growth in Central Croatia and its financial centre, Zagreb. It has a very high level of human development, low levels of wealth inequality, and a high standard of living. Croatia's labor market has been perennially inefficient, with inconsistent business standards as well as ineffective corporate and income tax policy.
The city of Zagreb is the capital and financial centre of Croatia. | |
| Currency | Euro (EUR, €) |
|---|---|
| 1 January – 31 December | |
Trade organisations | EU, EEA, WTO |
Country group |
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| Statistics | |
| Population | 3,855,641 (2022 Est.) |
| GDP |
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| GDP rank |
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GDP growth |
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GDP per capita |
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GDP per capita rank |
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GDP by sector |
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GDP by component |
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| 3.7% (2024 Est.) | |
Population below poverty line | 19.3% at risk of poverty (2023)
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| 28.5 low (2022) | |
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Labour force |
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| Unemployment |
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Average gross salary | €1,679 monthly (October 2023) |
Average net salary | €1,248 monthly (March 2024) |
Main industries | chemicals and plastics, machine tools, fabricated metal, electronics, pig iron and rolled steel products, aluminium, paper, wood products, construction materials, textiles, shipbuilding, petroleum and petroleum refining, food and beverages, tourism |
| External | |
| Exports | €24.1 billion (2022) |
Export goods | transport equipment, machinery, textiles, chemicals, foodstuffs, fuels |
Main export partners |
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| Imports | €41.9 billion (2022) |
Import goods | machinery, transport and electrical equipment; chemicals, fuels and lubricants; foodstuffs |
Main import partners | |
FDI stock |
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| $1.0 billion (2021) | |
Gross external debt | €49.55 billion (2022) |
| Public finances | |
Government debt |
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Credit rating |
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All values, unless otherwise stated, are in US dollars. | |
Croatia's economic history is closely linked to its historic nation-building efforts. Its pre-industrial economy leveraged the country's geography and natural resources to guide agricultural growth. The 1800s saw to a ship-building boom, railroading, and industrial production. During the 1900s, Croatia entered into a planned economy (with socialism) in 1941 and a command economy (with communism) during World War II. It experienced rapid urbanization in the 1950s and decentralized in 1965, diversifying its economy before the collapse of Yugoslavia during the 1990s. The Croatian War of Independence (1991-95) curbed 21–25% of wartime GDP, leaving behind a developing transition economy. As a modern state Croatia has since turned to social capitalism, aided by ongoing European integration and globalization.
The modern Croatian economy is considered high-income and dominated by its tertiary service sector, which accounts for 70% of GDP. The high levels of tourism in Croatia contributes to nearly 20% of GDP, with a total of 11.2 million tourists visiting in 2021. Croatia is an emerging energy power in the region, with strategic investments in liquefied natural gas (LNG), geothermal power, and electric automobiles. It supports regional economic activity via transportation networks across the Adriatic Sea and throughout Pan-European corridors. As a member of the European Union, Eurozone, and Schengen Area, it uses the euro (€) as official currency. Croatia has free-trade agreements with many world nations and is apart of the World Trade Organization (2000) and (provisionally) the EEA (2013).