Croatia Economy 2008

Economy - overview:
Once one of the wealthiest of the Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war as output collapsed and the country missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Since 2000, however, Croatia's economic fortunes have begun to improve slowly, with moderate but steady GDP growth between 4% and 6% led by a rebound in tourism and credit-driven consumer spending. Inflation over the same period has remained tame and the currency, the kuna, stable. Nevertheless, difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit and uneven regional development. The state retains a large role in the economy, as privatization efforts often meet stiff public and political resistance. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the part of the public and lack of strong support from politicians. The EU accession process should accelerate fiscal and structural reform.

GDP (purchasing power parity):
$69.44 billion (2007 est.)

GDP (official exchange rate):
$50.96 billion (2007 est.)

GDP - real growth rate:
5.6% (2007 est.)

GDP - per capita (PPP):
$15,500 (2007 est.)

GDP - composition by sector:
agriculture: 7.2%
industry: 32%
services: 60.7% (2007 est.)

Labor force:
1.714 million (2007 est.)

Labor force - by occupation:
agriculture: 2.7%
industry: 32.8%
services: 64.5% (2004)

Unemployment rate:
11.8% (2007 est.)

Population below poverty line:
11% (2003)

Household income or consumption by percentage share:
lowest 10%: 3.4%
highest 10%: 24.5% (2003 est.)

Distribution of family income - Gini index:
29 (2001)

Inflation rate (consumer prices):
2.2% (2007 est.)

Investment (gross fixed):
30.8% of GDP (2007 est.)

Budget:
revenues: $22.46 billion
expenditures: $23.85 billion (2007 est.)

Public debt:
45.6% of GDP (2007 est.)

Agriculture - products:
wheat, corn, sugar beets, sunflower seed, barley, alfalfa, clover, olives, citrus, grapes, soybeans, potatoes; livestock, dairy products

Industries:
chemicals and plastics, machine tools, fabricated metal, electronics, pig iron and rolled steel products, aluminum, paper, wood products, construction materials, textiles, shipbuilding, petroleum and petroleum refining, food and beverages, tourism

Industrial production growth rate:
6.5% (2007 est.)

Electricity - production:
11.99 billion kWh (2005)

Electricity - consumption:
14.97 billion kWh (2005)

Electricity - exports:
3.634 billion kWh (2005)

Electricity - imports:
8.746 billion kWh (2005)

Oil - production:
27,190 bbl/day (2005 est.)

Oil - consumption:
99,000 bbl/day (2005 est.)

Oil - exports:
40,930 bbl/day (2004)

Oil - imports:
109,800 bbl/day (2004)

Oil - proved reserves:
69.14 million bbl (1 January 2006 est.)

natural gas - production:
1.477 billion cu m (2005 est.)

natural gas - consumption:
2.58 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
1.103 billion cu m (2005)

natural gas - proved reserves:
27.16 billion cu m (1 January 2006 est.)

Current account balance:
-$3.836 billion (2007 est.)

Exports:
$12.11 billion f.o.b. (2007 est.)

Exports - commodities:
transport equipment, textiles, chemicals, foodstuffs, fuels

Exports - partners:
Italy 23.1%, Bosnia and Herzegovina 12.7%, Germany 10.4%, Slovenia 8.3%, Austria 6.1% (2006)

Imports:
$25.78 billion f.o.b. (2007 est.)

Imports - partners:
Italy 16.7%, Germany 14.5%, Russia 9.7%, Slovenia 6.8%, Austria 5.4%, China 5.3% (2006)

Economic aid - recipient:
ODA, $125.4 million (2005)

Reserves of foreign exchange and gold:
$13.13 billion (31 December 2007 est.)

Debt - external:
$41.56 billion (30 June 2007)

Stock of direct foreign investment - at home:
$18.33 billion (2006 est.)

Stock of direct foreign investment - abroad:
$2.878 billion (2006 est.)

Market value of publicly traded shares:
$29.01 billion (2006)

Currency (code):
kuna (HRK)

Exchange rates:
kuna per US dollar - 5.3735 (2007), 5.8625 (2006), 5.9473 (2005), 6.0358 (2004), 6.7035 (2003)