Croatia

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Croatian economy is registering optimistic results; thanks to the growing domestic demand stimulated by the recent credit boom led by newly privatized and foreign-capitalized banks, capital investment (mainly in construction of roads), increases in tourism, and gains by small and medium-sized private entreprises. The country recorded a GDP growth rate of 4.7% in 2006, 5.5% in 2007. However, economic growth has slowed since 2008, mainly due to weak consumption in the country, declining domestic demand and falling of exports.
The inflation is under control; remaining 2.9% during 2007. In order to streamline the country's economy, the government of Croatia has tightened its budget, started privatization and adopted policies favoring opening of the country's economy to the international trade. Croatian faces a high unemployment rate (14.8% of the active population).

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	49.04	58.56	69.33e	58.65	58.88
GDP (constant prices, annual % change)	4.7	5.5e	2.4	-3.5e	0.3
GDP per capita (USD)	11,045	13,199e	15,628	13,220	13,271
Inflation rate (%)	3.2	2.9	6.1	2.5	2.8
Unemployment rate (% of the labor force)	-	-	13.7	-	-
Current Account (billions USD)	-3.29	-4.44	-6.52	-3.81e	-2.41
Current Account (in % of GDP)	-6.7	-7.6e	-9.4e	-6.5	-4.1

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agriculture sector constitutes nearly 6.62% of country's GDP. Croatia mainly produces wheat, corn, sugar beet, fruits, wine and olive oil. More than one-third of Croatia is covered with forest and thus wood industry is one of the core sectors in its economy. The country has limited mineral resources. The industrial sector is focused mainly on the highly competitive activities such as textile, wood, iron & steel, aluminium and food-processing. The tourism sector is in full bloom. Euromonitor predicts a growth of 42% in this sector between 2005 and 2010. Nearly 10 millions tourists visited Croatia each years.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	12.8	30.6	56.7
Value added (in % of GDP)	7.2	31.6	61.3
Value added (annual % change)	1.6	6.6	5.5

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Croatian Kuna (HRK) - Average annual exchange rate for 1 USD	6.03	5.95	5.84	5.36	4.94

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 55.1/100
Position:: mostly unfree
World Rank:: 116 out of 179
Regional Rank:: 38 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Croatia joined the WTO in 2000 and has also signed an Agreement of Association with the European Union in 2001. Croatia is heavily dependent on foreign trade; its share in the country's GDP was 105% in 2008. Croatia's top three export partners are Italy, Bosnia and Germany. Its top three import partners are Italy, Germany and Russia. Croatia mainly exports mineral fuels & oils, ships & boats, electric & mechanical equipment & machinery, and wood & wooden articles; while as the products mainly imported are mineral fuels & oils, electric & mechanical equipment & machinery and vehicles. The most promising sectors in the country are tourism, building & construction, telecommunications, and the retail sector.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	14,216	16,560	18,301	21,131	25,556
Exports of goods (millions USD)	6,311	8,214	8,960	10,644	12,623
Imports of services (millions USD)	2,982	3,565	3,400	3,548	3,925
Exports of services (millions USD)	8,569	9,373	9,921	10,802	12,525
Imports of goods and services (annual % change)	12.1	4.6	3.5	7.3	5.8
Exports of goods and services (annual % change)	11.4	5.7	4.6	6.9	5.7
Imports of goods and services (in % of GDP)	57.9	56.4	55.5	56.8	56.3
Exports of goods and services (in % of GDP)	47.1	47.5	47.1	47.9	47.7
Trade Balance (millions USD)	-7,905	-8,346	-9,341	-10,486	-12,933
Trade Balance (including service) (millions USD)	-2,318	-2,538	-2,821	-3,232	-4,333
Foreign trade (in % of GDP)	105.0	103.9	102.7	104.6	104.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Italy	19.1%
Bosnia and Herzegovina	15.4%
Germany	10.8%
Slovenia	7.8%
Austria	5.8%
United States	2.5%
Hungary	2.4%
United Kingdom	2.4%
France	2.1%
Malta	1.5%
Marshall Islands	1.4%
Russia	1.3%
Netherlands	1.3%
Czech Republic	1.0%
Cyprus	1.0%
Macedonia	1.0%
Poland	1.0%
Switzerland	1.0%
United Arab Emirates	0.9%
Qatar	0.7%
See more countries	41.2%

Main suppliers (% of imports)	2008
Italy	17.1%
Germany	13.4%
Russia	10.4%
China	6.1%
Slovenia	5.6%
Austria	4.9%
France	3.3%
Hungary	3.2%
Bosnia and Herzegovina	2.7%
Czech Republic	2.1%
United States	2.1%
Poland	2.0%
United Kingdom	1.9%
Netherlands	1.7%
Turkey	1.6%
Spain	1.5%
Switzerland	1.4%
Japan	1.4%
Slovakia	1.2%
Sweden	1.1%
See more countries	47.4%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	12.9%
Ships, boats and floating structuresShips, boats and floating structures	12.4%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.4%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	9.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	4.2%
Plastics and articles thereofPlastics and articles thereof	3.9%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	3.3%
Articles of iron or steelArticles of iron or steel	3.3%
Aluminium and articles thereofAluminium and articles thereof	2.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	2.5%
FertilizersFertilizers	2.2%
Pharmaceutical productsPharmaceutical products	2.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.9%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.9%
Iron and steelIron and steel	1.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.5%
Sugars and sugar confectionerySugars and sugar confectionery	1.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.2%
Glass and glasswareGlass and glassware	1.0%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.9%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.9%
Ceramic productsCeramic products	0.8%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.8%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.8%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.6%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
CerealsCereals	0.4%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.4%
Miscellaneous chemical productsMiscellaneous chemical products	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Organic chemicalsOrganic chemicals	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Man-made filamentsMan-made filaments	0.1%
Live animalsLive animals	0.1%
Rubber and articles thereofRubber and articles thereof	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
See more products	52.1%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	17.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	11.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.5%
Ships, boats and floating structuresShips, boats and floating structures	4.2%
Iron and steelIron and steel	4.2%
Plastics and articles thereofPlastics and articles thereof	3.7%
Articles of iron or steelArticles of iron or steel	3.4%
Pharmaceutical productsPharmaceutical products	2.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.1%
Aluminium and articles thereofAluminium and articles thereof	1.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.5%
Organic chemicalsOrganic chemicals	1.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.0%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.0%
Rubber and articles thereofRubber and articles thereof	0.9%
Ceramic productsCeramic products	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.7%
Meat and edible meat offalMeat and edible meat offal	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.7%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Glass and glasswareGlass and glassware	0.5%
Live animalsLive animals	0.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.4%
FertilizersFertilizers	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
CottonCotton	0.3%
CerealsCereals	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Man-made filamentsMan-made filaments	0.2%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Ores, slag and ashOres, slag and ash	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
See more products	50.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economy, Labour and Entrepreneurship
Ministry of Finance
Statistical Office: Croatian Bureau of Statistics
Central Bank: Croatian National Bank
Stock Exchange: Zagreb Stock Exchange
Search Engines: Pogodak
Cro Web
Croatian Web directory
Economic portals: SEEbiz.eu - Regional Business Multilanguage web portal covering Croatia, Serbia, Slovenia, Bosnia, Macedonia and Montenegro.
Croatian Information Centre

Political outline

Executive Power: The legislature is unicameral. The Parliament is a legislative body whose members are elected from party lists by popular vote to serve four-year terms. The constitution has been changed to shift power away from the President to the Parliament. People of Croatia have considerable political rights.
Legislative Power: President is the chief of the state, elected by popular vote for a five-year term. President can dissolve the Parliament and call for elections. President is also the commander-in-chief of the armed forces. The President appoints the Prime Minister and the Cabinet with the consent of Parliament. Prime Minister holds the executive powers.
Main political parties: Croatia has a multi-party system. The major political parties in the country are:
- HDZ (Croatian Democratic Union) - socialist, conservative, right-wing, advocates political and economic liberalisation;
- SDP (Social democratic party) - left-wing, ex-communist party;
- HNS (Croatian People's Party - Liberal Democrats) - liberal, democratic, advoactes economic reforms,
- HSP (Croatian Party of Rights) - nationalist, right-wing, advocates ethno-centric politics;
- HSS (Croatian Peasant Party) - left-wing, conservative, advocates pro-agrarian politices;
- HSU (Croatian Pensioner Party) - protects the interest of pensioners, draws support from labour unions as well.,
Current political leaders: President: Stjepan (Stipe) MESIC (since February 2000, re-elected in January 2005) - HNS
Prime Minister: Ivo SANADER (since December 2003) HDZ
Next election dates: Presidential: January 2010
Parliamentary: November 2011

Indicator of freedom of the press

World Rank:: 45/173
Evolution:: 4 places down compared to 2008

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 2/7

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