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Economy of Croatia


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Croatia has a high-income market economy. International Monetary Fund data shows that Croatian nominal GDP stood at $63.842 billion, or $14,457 per capita, at the same time in 2011 while purchasing power parity GDP was $80.334 billion or $18,191 per capita. According to Eurostat data, Croatian PPS GDP per capita stood at 61% of the EU average in 2010. Real GDP growth in 2007 was 6.0 per cent. The average gross salary of a Croatian worker during the first nine months of 2008 was 7,161 kuna (US$ 1,530) per month. In 2007, the International Labour Organization-defined unemployment rate stood at 9.1%, after falling steadily from 14.7% in 2002. The registered unemployment rate was higher, though, standing at 13.7% in December 2008.

In 2009, economic output was dominated by the service sector which accounted for 73.6% of GDP, followed by the industrial sector with 20.5% and agriculture accounting for 5.9% of GDP. According to 2004 data, 2.7% of the workforce were employed in agriculture, 32.8% by industry and 64.5% in services. The industrial sector is dominated by shipbuilding, food processing, pharmaceuticals, information technology, biochemical and timber industry. In 2010, Croatian exports were valued at 64.9 billion kuna (€8.65 billion) with 110.3 billion kuna (€14.7 billion) worth of imports. The largest trading partner is the European Union.

Privatization and the drive toward a market economy had barely begun under the new Croatian Government when war broke out in 1991. As a result of the war, the economic infrastructure sustained massive damage, particularly the revenue-rich tourism industry. From 1989 to 1993, the GDP fell 40.5%. The Croatian state still controls a significant part of the economy, with government expenditures accounting for as much as 40% of GDP. A backlogged judiciary system, combined with inefficient public administration, especially on issues of land ownership and corruption, are particular concerns. In 2011 the country has
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