Capital City: Zagreb
	It is %T:%M %A in Zagreb

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Economic trends

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 enterprises. The country recorded a GDP growth rate of 4.3% in 2005, 4.8% in 2006, 5.6% en 2007. Nevertheless the IMF forecasts a 4.7% GDP growth rate in 2008. The inflation is under control; remaining 2.3% 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 (16% of the active population).

Main branches of industry

The agriculture sector constitutes nearly 6.62% of country's GDP in 2006. 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.

International trade

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 104.7% in 2006. Croatia's top three export partners are: Italy, Bosnia and Germany; while as 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.