Chorvatsko
The Land of unique beauty, ancient history and rich cultural heritage that attracts million of tourists every year
Regional energy hub
Total area: 56,594 sq km
Population: 3.8 million
Government type: Parliamentary democracy
Administrative division: 20 counties called “zupanija”
Capital + other major cities: Zagreb (665,00) + Split (150,000), Rijeka (108,000), Osijek (75,000)
Currency: Euro (since January 2023)
Languages: Croatian (official) 95.6%, Serbian 1.2%, other 3%
Ethnicity: Croat 90.4%, Serb 4.4%, other 4.4%
Religion: Roman Catholic 86.3%, Orthodox 4.4%, Muslim 1.5%, other 1.5%, unspecified 2.5%, not religious or atheist 3.8%
President: (Mr.) Zoran MILANOVIĆ (since 19 February 2020)
Prime Minister: (Mr.) Andrej PLENKOVIĆ (since 19 October 2016)
Date of EU accession: 1 July 2013
KEY FEATURES
- Tourism dominates the Croatian service sector
- Newest EU member since 2013
- Service-based economy – 70% of GDP
- NATO member since 2009
- High emigration of (particularly) young people
- Member of the Eurozone and Schengen area (since 2023)
- OECD accession candidate since 2022
MACROECONOMIC OVERVIEW
Croatia’s economic transformation in the 1990s was severely disrupted by the devastating war (1991–1995), which led to a cumulative GDP decline of around 30% and economic damages. Following a difficult post-war recovery and an intensive decade-long EU accession process, Croatia joined the European Union on July 1, 2013. Since then, the country has demonstrated strong macroeconomic stability and successfully entered both the eurozone and the Schengen Area simultaneously on January 1, 2023. Croatia’s GDP per capita steadily rose from 61% of the EU average in 2013 to 76% in 2023, though it remains among the EU’s lower-middle-ranking economies, alongside Slovakia and Estonia. The state continues to play a significant role in the economy, with ongoing efforts needed for public sector reform and privatization of state-owned enterprises.
In recent years, Croatia has delivered robust economic performance while maintaining fiscal discipline. Public debt declined from a peak of 86.5% of GDP in 2020 to 57.6% by the end of 2024. After a sharp pandemic-induced contraction in 2020, the economy rebounded strongly with growth rates of 12.6% in 2021 and 7.3% in 2022, followed by solid expansions of 3.3% in 2023 and an estimated 3.9% in 2024. Unemployment has been markedly reduced, reaching a historic low of 5% in 2024. Inflation has remained relatively moderate, with an average annual rate of 4.0% in 2024, slightly above the EU average, but favorable compared to many regional peers.
Since joining the EU, Croatia has faced significant demographic challenges, marked by substantial emigration—especially among younger populations. Between 2014 and 2022, an estimated 370,000 people left the country, surpassing the entire outflow experienced during the communist era (1945–1991). However, recent data indicate signs of stabilization, with positive net migration recorded in 2023 and 2024, partly due to new arrivals and temporary protection granted to displaced persons.
Selected economic indicators, Croatia, 2017 - 2023
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
3.4
|
3.0
|
3.4
|
-8.5
|
13.0
|
7.0 (p)
|
3.1 (p)
|
| GDP at current prices |
€ bn
|
49.09
|
51.63
|
55.64
|
50.45
|
58.3
|
68.3
|
76.4
|
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
24.56
|
26.07
|
28.2
|
20.9
|
29.0
|
40.2
|
41.3 (p)
|
| Imports |
€ bn
|
24.26
|
26.51
|
28.37
|
24.4
|
30.6
|
44.4
|
42.7 (p)
|
| Balance |
€ bn
|
0.3
|
-0.44
|
-0.17
|
-3.5
|
-1.6
|
-4.2
|
-1.4 (p)
|
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
1.3 | 1.6 |
0.8
|
0.0
|
2.7
|
10.7
|
8.4
|
| PPI – industry – average |
%
|
2.0 | 2.4 |
0.8
|
-2.0 |
9.6
|
26.4
|
5.9
|
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
11.2 | 8.5 | 6.6 | 7.5 | 7.6 | 7.0 | 6.1 |
| Average monthly gross wage |
€
|
1,082 | 1,139 | 1,220 | 1,222 | 1,274 | 1,380 | 1,583 |
Source: Croatian Bureau of Statisticcs, IMF, OECD, Eurostat, ECB, 2017-2023
KEY SECTORS
Croatia’s economy is shaped by a strong service sector and a diversified industrial base, while agriculture plays a smaller but still important role. The agricultural sector contributes approximately 3.4% to GDP and employs around 4.7% of the workforce. Croatia is largely self-sufficient in cereals and oilseed crops, including wheat, corn, oats, barley, and major oilseeds.
The secondary sector contributes around 21% of GDP and employs 27.5% of the workforce. Croatia has a long-standing industrial tradition, particularly in shipbuilding, petrochemicals, and manufacturing. Since privatization in 2013, the shipbuilding industry has undergone a significant transformation, with production declining by roughly 75%. Nevertheless, the sector has successfully transitioned toward high-value niche markets, focusing on luxury yachts, polar cruise vessels, and defense ships. Today, shipbuilding accounts for about 2% of GDP and directly employs around 3,000 people, supported by an additional 1,300 subcontractors.
Croatia’s industrial base is diverse and competitive, with major activities including food and beverage production, metal processing and machinery, refined petroleum products, and chemicals and pharmaceuticals. Forests cover almost half of Croatia’s territory, making the wood and furniture industry a fundamental part of the economy. Despite these strengths, the engineering industry in Croatia remains underdeveloped, with a continued dependence on imports for many industrial components. The country’s limited mineral resources further constrain expansion in heavy industry.
The service sector dominates Croatia’s economy, accounting for 70% of GDP and employing approximately 68% of the workforce.
Tourism
Tourism plays a vital role in this sector, with its direct contribution to GDP estimated at 11.3%, according to the Croatian Bureau of Statistics. However, when considering all tourism-related activities, the total contribution rises to around 24.5% of GDP. In 2023, Croatia welcomed 19.5 million tourist arrivals. Tourism expansion is expected to be supported in the coming years by the ongoing development of modern infrastructure, as well as by the recent entry into the Eurozone and the Schengen Area.
Food industry
Food and beverage production is the largest manufacturing segment in Croatia, accounting for 24% of manufacturing revenue. The industry employs around 60,000 people and contributes roughly 3–4% to the country’s GDP. It encompasses a broad range of products, including dairy, meat, olive oil, wine, seafood, fruits, and vegetables, supporting both domestic consumption and export markets.
Pharmaceuticals
Chemicals and pharmaceuticals represent 11% of Croatia’s manufacturing output and are one of the country’s top export areas. The pharmaceutical industry employs over 6,000 people across approximately 50 companies. A key player is Pliva, one of the leading pharmaceutical firms in Southeastern Europe. Croatian pharmaceutical companies focus heavily on R&D, especially in generic drug development, which helps maintain their global competitiveness.
ICT
The ICT sector is expanding rapidly, with ICT specialists making up 4.3% of total employment. ICT exports have grown significantly, increasing from 1.51% of GDP in 2018 to 2.14% in 2022. Croatia ranks 21st among EU member states in the Digital Economy and Society Index (DESI), reflecting solid progress in digital transformation.
Manufacture of electrical equipment and machinery
Metal processing and machinery account for 20% of industrial revenue, while the manufacture of electrical equipment and machinery employs over 23,000 workers and represents 9% of industrial output.
Energy sector
Croatia has also established itself as a regional energy hub, centered on the liquefied natural gas (LNG) terminal on Krk Island, which began operations in January 2021 with an initial annual capacity of 2.6 billion cubic meters. The terminal is currently undergoing expansion to reach a capacity of 6.1 billion cubic meters by 2025, at an investment cost of EUR 51 million. This development positions Croatia as a strategic LNG gateway for Central and Southeastern Europe. This infrastructure has enabled Croatia to eliminate dependence on Russian gas and to export surplus capacity to neighboring countries, including Hungary, Slovenia, and Austria.
EXPORTS & IMPORTS
In 2023, exports of goods and services accounted for 52.9% of Croatia’s GDP. Services, especially tourism, play a vital role in offsetting Croatia’s goods trade deficit. Croatia’s manufacturing remains focused on low and medium-low technology, with medium- and high-tech products making up 47.5% of exports, below eurozone averages.
EXPORTS & IMPORTS
2023 export and import data:
Main import partners:
Italy – 14.5%
Germany – 14.2%
Slovenia – 11.5%
Hungary – 6.4%
Austria – 5.5%
Main export partners:
Italy – 12.2%
Germany – 12.2%
Slovenia – 11.2%
Bosnia Herzegovina – 10.1%
Hungary – 6.9%
Serbia – 6.3%
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