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Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

After becoming the 28th member state of the EU on July 1, 2013, the Croatian economy was only able to return to growth in 2015: since 2008, the country had experienced six consecutive years of economic recession, with the GDP falling by 12% (EU data). The economy was severely hit by the crisis linked to the covid-19 pandemic; however, it managed to recover and return to its pre-crisis level in 2021. GDP growth continued in 2022 (+5.9% as per the IMF estimates) thanks to a strong first half of the year on the back of domestic demand, but contracted in the third quarter (-0.4%) due to lower investment and government consumption in a context of tighter financing conditions, supply chain bottlenecks and soaring inflation. In 2023, real GDP is forecast to grow by 3.5% (IMF, 1.2%  according to the EU commission) supported by the accession of Croatia to the euro (which was adopted on 1 January) and Schengen areas, although geopolitical tensions and a weaker global environment are set to weigh on external demand. For 2024, the IMF projects growth at 3% with household consumption as the most important contributor.

Croatia's public debt stood at 72.6% of GDP in 2022, returning around its pre-COVID level, with the ratio expected to decrease further this year (68.6%) and in 2024 (65.9%). In 2022, the general government deficit was estimated at 3.4% of GDP as despite the phasing out of support measures the government adopted several packages to fight inflation and the rise in energy prices. The 2023 budget draft envisages a general government budget deficit equivalent to 2.3% of GDP. The aforementioned rise in global energy and food prices contributed to a spike in inflation, which reached 9.8% in 2022, above the euro area average (8.4%). In 2023, base effects and a steeper decline in energy and food prices than previously expected are set to lower inflation to 5.5% and 3.9% in 2024.

According to IMF estimates, unemployment decreased to 6.9% in 2022, from 8.1% one year earlier, and is expected to follow a downward trend in 2023 (6.6%) and 2024 (6.1%). Real incomes are projected to start recovering in the second half of 2023, benefiting from lower inflation and a still resilient labour market, supporting a mild increase in household consumption. Though the average revenue of Croatians is still below the European one (with an estimated GDP per capita PPP of USD 37,550 in 2022 according to the IMF), Croatia remains the second most developed economy of the Balkan region, after Slovenia.

Main Indicators 202020212022 (E)2023 (E)2024 (E)
GDP (billions USD) 57.5868.8971.0278.8882.96
GDP (Constant Prices, Annual % Change) -8.613.
GDP per Capita (USD) 14,22417,76018,42720,53721,649
General Government Balance (in % of GDP) -5.6-3.5-2.1-2.8-1.9
General Government Gross Debt (in % of GDP) 86.878.667.565.264.2
Inflation Rate (%) -0.02.710.77.43.6
Unemployment Rate (% of the Labour Force)
Current Account (billions USD) -0.311.21-0.88-1.44-1.52
Current Account (in % of GDP) -0.51.8-1.2-1.8-1.8

Source: IMF – World Economic Outlook Database , October 2021

Country Risk

See the country risk analysis provided by La Coface.



Main Sectors of Industry

The agricultural sector represents only 2.9% of the country's GDP and employs 6% of the workforce (World Bank, latest data available). Croatia has 1.5 million hectares of agricultural land and more than 1.9 million hectares of forests (FAO). The country is self-sufficient in the production of wheat, corn, sugar beet, fruits, wine and olive oil; however, imports of agricultural products have been on the rise in recent years. The size of the farms is generally small (in most cases less than 3 hectares). According to preliminary figures from the State Bureau of Statistics (DZS), the net added value of the agricultural sector for 2022 was projected at HRK 8.7 billion, marking a growth of 1.1% y-o-y, while the value of real income in agriculture was estimated at HRK 12.7 billion (+0.8% y-o-y).

The secondary sector contributes 19.8% of GDP and employs 28% of the active population. Croatian industry is concentrated in competitive activities: textiles, wood, steel industry, aluminium and the food industry. With more than one-third of the territory covered with forests, the wood industry is one of the fundamental sectors of the economy. The country has limited mineral resources. The manufacturing sector is estimated to contribute 11% of the national value added. Figures from the State Bureau of Statistics (DZS) show that industrial output grew 1.6% year-on-year in 2022, with the manufacture of vehicles registering the highest increase (26.4%).

The service sector represents 60.4% of the country’s GDP, employing 66% of the workforce. The tourism sector, in particular, is among the key segments of the Croatian economy, accounting for almost a quarter of GDP, by far the largest share in the EU. After being hit hard by the economic crisis following the COVID-19 pandemic, the tourism sector recovered in 2022 when Croatia welcomed 18.9 million tourists (37% more than the previous year) and generated USD 13.8 billion in revenues from foreign tourists. According to the latest data by the European Banking Federation, the Croatian banking sector performance kept up a strong tone in the first half of 2022 as ROA (return on assets) remained virtually unchanged at 1.2, while ROE (return on equity) showed ongoing improvement at 9.5%.

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 6.2 27.7 66.1
Value Added (in % of GDP) 2.9 19.8 60.4
Value Added (Annual % Change) 8.2 9.1 14.0

Source: World Bank - Latest available data.

Monetary Indicators 20162017201820192020
Croatian Kuna (HRK) - Average Annual Exchange Rate For 1 USD 6.816.626.286.606.61

Source: World Bank - Latest available data.



Foreign Trade

Croatia joined the WTO in 2000 and depends heavily on foreign trade, which amounts to 104% of the GDP (World Bank, latest data available). The country mainly exports petroleum oils (9.5%), electrical energy (5.2%), medicaments (3.4%), and wood (2.2%); while imports are driven by motor cars (4%), petroleum oils (6.5%), petroleum gas (3.8%), and medicaments (3.2% - data Comtrade).

In the first eleven months of 2022, the EU accounted for 68.7% of Croatian exports (mainly towards Italy, Hungary, Slovenia, and Germany). Bosnia and Herzegovina was the second single destination (10.4% of total exports). In the same period, the leading import origins were the EU (70.3%, reflecting the structure of exports’ destinations), Serbia (3.4%), Bosnia and Herzegovina (3.4%), and China (3.3% - data Croatian Bureau of Statistics).

In terms of merchandise, Croatia has a structural trade deficit: according to figures by WTO, in 2021 exports of goods totalled USD 22.8 billion (+32.8 y-o-y) while imports increased by 29.4%, to USD 34.5 billion. However, the country is a net exporter of services, with exports – at USD 16.7 billion – far above imports (USD 5.1 billion). According to figures by the World Bank, the overall trade deficit stood at an estimated 1.5% of GDP in 2020, much lower than the level of -7% recorded one year earlier. Preliminary figures from the Croatian Bureau of Statistics show that in the first eleven months of 2022, the value of Croatian merchandise exports totalled HRK 165.8 billion (EUR 22 billion), an increase of 32.1% over the same period of 2021, while the value of imports reached HRK 287.8 billion (EUR 38.2 billion), up by 48.5% year-on-year.

Foreign Trade Values 20172018201920202021
Imports of Goods (million USD) 24,82928,20328,16026,71934,588
Exports of Goods (million USD) 16,06917,40217,18017,16722,812
Imports of Services (million USD) 4,5745,4305,5733,9325,163
Exports of Services (million USD) 15,05416,35417,1629,71416,770

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20172018201920202021
Foreign Trade (in % of GDP) 97.699.7101.690.0104.0
Trade Balance (million USD) -9,538-11,440-11,754-10,083-12,602
Trade Balance (Including Service) (million USD) 584-648-289-3,948-1,023
Imports of Goods and Services (Annual % Change)
Exports of Goods and Services (Annual % Change)
Imports of Goods and Services (in % of GDP) 48.550.351.048.552.7
Exports of Goods and Services (in % of GDP) 49.149.450.641.551.3

Source: World Bank ; Latest available data

Foreign Trade Forecasts 20222023 (e)2024 (e)2025 (e)2026 (e)
Volume of exports of goods and services (Annual % change) 25.4-
Volume of imports of goods and services (Annual % change) 25.0-

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

International Economic Cooperation
Slovenia is a member of the EU since July 1st, 2013 and as such is a member of the EU Customs Union. The Republic of Croatia has signed agreements on free trade with the countries of former Yugoslavia: Albania, Turkey, Moldova, and Macedonia.

Main Partner Countries

Main Customers
(% of Exports)
Italy 13.1%
Germany 12.3%
Slovenia 10.7%
Bosnia and Herzegovina 8.9%
Hungary 8.2%
See More Countries 46.8%
Main Suppliers
(% of Imports)
Germany 14.8%
Italy 12.6%
Slovenia 10.9%
Hungary 7.4%
Austria 6.3%
See More Countries 48.0%

Source: Comtrade, Latest Available Data



Political Outline

Current Political Leaders
President-elect: Zoran MILANOVIC (since 18 February 2020)
Prime Minister: Andrej PLENKOVIC (since 19 October 2016)
Next Election Dates
Presidential: 2024
Assembly: 2024
Main Political Parties
Croatia has a multi-party system. The major political parties are:

- Croatian Democratic Union (HDZ): centre-right, socialist, conservative, advocates political and economic liberalisation, typically dominated the political scene since 1991 and is the current leader of the ruling coalition
- Social Democrats: centre-left. It was founded in 2022 by a parliamentary group that left the Social Democratic Party
- Social Democratic Party (SDP): centre-left, ex-communist party, it is the main opposition party
- Homeland Movement (DP): Croatian nationalism, social conservativism, Euroscepticism
- Croatian People's Party (HNS): centre, liberal, advocates economic reforms. Supports the current government
- Bridge of Independant Lists (MOST): centre, centre right, fiscal conservatism, liberalism
- Croatian Peasant Party (HSS): agrarian, green liberalism
- Civic Liberal Alliance (GLAS): liberalism, social liberalism
- Green–Left Coalition: left-wing ecologist political alliance
- Human Blockade (ŽZ): populism, pro-Russia
- Independent Democratic Serb Party (SDSS): Serb minority politics, advocates for social democracy
- Istrian Democratic Assembly (IDS-DDI): Istrian Regionalism, liberalism
- Bandić Milan 365 - Labour and Solidarity Party (BM 365): social-democracy, populism

Executive Power
The President is the chief of the state, elected by popular vote for a five-year term (renewable once). He can dissolve the Parliament and call for elections and is also the commander-in-chief of the armed forces. The President appoints the Prime Minister (generally the leader of the majority party) and the Cabinet with the consent of Parliament. The President, the Prime Minister and the Cabinet hold the executive powers.
Legislative Power
Legislative power is unicameral. The 151 members of parliament, called the Sabor, are elected by universal suffrage for a four-year term. 8 seats are reserved for ethnic minorities (Serbs, Hungarians, Czech, Slovaks, etc.).
The Constitution has been amended to transfer part of the powers of the President to parliament.


COVID-19 Country Response

COVID-19 epidemic evolution
To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the COVID-19 disease in Croatia, please visit the official governmental portal, which provides infographics on data by the Croatian Institute of Public Health.
For the international outlook you can consult the latest
situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.
Sanitary measures

To find out about the latest public health situation in Croatia and the current sanitary measures in vigour, please consult the official governmental portal including the up-to-date information on the containment measures put in place (in Croatian). For public health recommendations, refer to the website of the Croatian Institute of Public Health (in Croatian).
Visit the website of the Croatian government for updates on the restrictions.

Travel restrictions

The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.

The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.

Import & export restrictions

For the information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the portal of the Croatian Customs Administration (in Croatian).
export license is required to export personal protective equipment outside of the European Union.
For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Croatia on the
International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

To know about the economic measures taken by the Croatian government to address the impact of the COVID-19 pandemic on the national economy, please visit the official governmental portal, which provides information on the measures taken by each Ministry for the domains under their responsibility (in Croatian). The website of the Ministry of Economy, Entrepreneurship and Crafts provides further info on the support schemes (in Croatian). For a detailed analysis of the economic and fiscal measures, consult the guide by Deloitte.
The information on the EU’s economic response to COVID-19 and the actions to minimise the fallout on the EU member states’ economies of the COVID-19 outbreak is available on the websites of the
European Commission and the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Croatian government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Croatia in the
IMF’s Policy Tracker platform.

Support plan for businesses

For the information on the local business support scheme and taxation measures established by the Croatian government to help businesses to deal with the economic impacts of the COVID-19 epidemic on their activity, please consult the official governmental portal, which provides information on the measures taken by each Ministry for the domains under their responsibility (in Croatian). Further information in English can be sourced on the guide by Deloitte.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19.

Support plan for exporters

The government of Croatia can issue guarantees to commercial banks of exporters and to the Croatian Bank for Reconstruction and Development (HBOR) under the export guarantee fund. Furthermore, the European Commission has approved a EUR 790 million Croatian guarantee scheme for companies with export activities affected by the coronavirus outbreak.
The European Commission adopted a Temporary Framework for State aid measures to support the economy in the COVID-19 outbreak, which enables short-term export credit insurance to be provided by the State where needed.