Croatian Economic Information

Averaging 4% GDP since 1997, Croatia is one of the most dynamic transitional countries in the CEE.

Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area with a per capita output perhaps one-third above the Yugoslav average. The economy emerged from a mild recession in 2000 with tourism, banking, and public investments leading the way.

Unemployment remains high, at about 18%, with structural factors slowing its decline. 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.

Growth, while impressive at about 3% to 4% for the last several years, has been stimulated, in part, through high fiscal deficits and rapid credit growth. The EU accession process should accelerate fiscal and structural reform.

Economic Variable	Result
GDP (purchasing power parity):	$55.79 billion (2005 est.)
GDP - real growth rate:	4.3%
GDP - composition by sector:	Agriculture: 7% Industry: 30.8% Services: 62.2%
Labor force:	1.71 million
Unemployment rate:	18%
Popn. below poverty line:	11%