Economic overview Croatia, in 34 editions.

Before the political disintegration dissolution of Yugoslavia, the republic of Croatia Croatia, after
stood next to Slovenia as Slovenia, was the most prosperous and industrialized area, with
a per capita
output roughly comparable to that of Portugal and perhaps
one-third above
the Yugoslav average. Serbia and the Serb-dominated army of Croatian Serb Nationalists control approximately one
third of the old Yugoslavia, however, have seized Croatian territory, and one of the
overriding determinant determinants of
Croatia's long-term political and economic prospects will be the
final border settlement. Under the most favorable circumstances, Croatia
will retain the Dalmatian coast with its major tourist attractions and resolution
Slavonia with its oilfields and rich agricultural land. Even so, of this territorial dispute. Croatia
would face faces monumental problems stemming
from: the legacy of longtime
Communist mismanagement of the economy; large
foreign debt; damage during
the fighting to bridges, factories, powerlines,
buildings, and houses; the large refugee population, both Croatian and
Bosnian; and the disruption of economic ties to Serbia and the other former Yugoslav
republics. Yugoslav republics, as well as within its own territory. At the minimum,
extensive Western aid and investment, especially
in the tourist and oil
industries, would seem necessary to salvage a
desperate economic situation.
However, peace and political stability must
come first. As of June 1993,
fighting continues among Croats, Serbs, and Muslims, and national boundaries
and final political arrangements are still in doubt.

Before the dissolution of Yugoslavia, the republic of Croatia, after
Slovenia, was the most prosperous and industrialized area, with a per capita
capita output roughly comparable to that of Portugal and perhaps
one-third above
the Yugoslav average. At present, Croatian Serb
Nationalists control approximately one
third one-third of the Croatian
territory, and one of the overriding determinants of
Croatia's
long-term political and economic prospects will be the resolution
of
this territorial dispute. Croatia faces monumental economic problems stemming
stemming from: the legacy of longtime Communist mismanagement of the
economy; large
foreign debt; damage during the fighting to bridges, factories, powerlines,
factories, power lines, buildings, and houses; the large refugee
population, both Croatian and
Bosnian; and the disruption of economic
ties to Serbia and the other former
Yugoslav republics, as well as
within its own territory. At the minimum,
extensive Western aid and
investment, especially in the tourist and oil
industries, would seem
necessary to salvage a desperate economic situation.
However, peace
and political stability must come first. first; only then will recent
government moves toward a "market-friendly" economy reverse the sharp
drop in output. As of June 1993,
May 1994, fighting continues among Croats,
Serbs, and Muslims, and national boundaries
and final political
arrangements are still in doubt.

Before the dissolution of Yugoslavia, the republic of
Croatia, after
Slovenia, was the most prosperous and industrialized
area, with a per
capita output roughly comparable to that of Portugal and perhaps
one-third above the Yugoslav
average. At present, Croatian Serb
Nationalists Separatists control approximately
one-third of the Croatian
territory, and one of the overriding
determinants of Croatia's
long-term political and economic prospects
will be the resolution of
this territorial dispute. Croatia faces monumental
serious economic problems
stemming from: the legacy of longtime
Communist mismanagement of the
economy; large foreign debt; damage
during the fighting to bridges,
factories, power lines, buildings, and
houses; the large refugee
population, both Croatian and Bosnian; and
the disruption of economic
ties to Serbia and the other former
Yugoslav republics, as well as
within its own territory. At the
minimum, extensive Western aid and
investment, especially in the
tourist and oil industries, would seem
necessary to salvage a desperate economic situation. revive the
moribund economy. However, peace
and political stability must come
first; only then will recent
government moves toward a
"market-friendly" economy reverse the sharp
drop in restore old levels of output. As of May 1994, February
1995, fighting continues among Croats,
Serbs, and Muslims, and
national boundaries and final political
arrangements are still in
doubt.

Before the dissolution of Yugoslavia, the republic of
Republic of Croatia, after Slovenia, was the most prosperous and industrialized
industrialized area, with a per capita output perhaps one-third
above the Yugoslav
average. At present, Croatian Serb Separatists control approximately
one-third of the Croatian territory, and one of the overriding
determinants of Croatia's long-term political and economic prospects
will be the resolution of this territorial dispute. Croatia faces
serious considerable economic
problems stemming from: the legacy of longtime communist
Communist mismanagement of the economy; large foreign debt; damage
during the
internecine fighting to bridges, factories, power lines, buildings, and
and houses; the large refugee population, both Croatian and Bosnian; and
and the disruption of economic ties to Serbia and the other former
Yugoslav republics, as well as within its own territory. At the
minimum, extensive Western aid
and investment, especially in the
tourist and oil industries, would seem necessary to revive the
moribund help restore the economy. However, peace The government has been successful in some
reform efforts including stabilization policies and political stability must come has normalized
first; only then will recent government moves toward a relations with creditors. Yet it still is struggling with
"market-friendly" economy restore old levels of output. As privatization of February
1995, fighting continues among Croats, Serbs, and Muslims, large state enterprises and with bank reform. The
national boundaries and final political arrangements are still in draft 1996 budget, which had raised concerns about inflation,
doubt. capitalizes on the "peace dividend" to boost expenditures on the
repair and upgrading of infrastructure.

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. Croatia faces considerable economic
problems stemming from:
the legacy of longtime communist
mismanagement of the economy; large foreign debt; damage
during the
internecine fighting to bridges, factories, power lines, buildings,
buildings, and houses; the large refugee population, both Croatian and Bosnian;
Bosnian; and the disruption of economic ties to Serbia and the other former
Yugoslav republics, as well as within its own territory. ties. Western aid
and
investment, especially in the tourist and oil industries, would
help
restore the economy. The government has been successful in some
reform
efforts including - partially macroeconomic stabilization policies - and it has normalized
normalized relations with its creditors. Yet it still is struggling with
with privatization of large state enterprises and with bank reform. The
The draft 1996 budget, which had raised concerns about inflation,
capitalizes on the "peace dividend" to boost 1997 budget boosts expenditures on the
repair and upgrading
of infrastructure. In 1996, the substantial trade deficit was
partially offset by increased earnings from tourism.

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. Croatia faces considerable economic problems stemming from:
the legacy of longtime communist mismanagement of the economy; damage
during the internecine fighting to bridges, factories, power lines,
buildings, and houses; the large refugee and displaced population,
both Croatian and
Bosnian; and the disruption of economic ties.
Western aid and
investment, especially in the tourist and oil
industries, would help
restore the economy. The government has been
successful in some reform
efforts - partially efforts-partially macroeconomic
stabilization policies - and policies-and it has
normalized relations with its
creditors. Yet it still is struggling
with privatization of large
state enterprises and with bank reform.
The draft 1997 budget boosts expenditures on the repair and upgrading
of infrastructure. In 1996, the substantial trade deficit was
partially offset by increased earnings from tourism.

Before the dissolution of Yugoslavia, the Republic
Republic of Croatia, after Slovenia, was the most prosperous and industrialized
industrialized area, with a per capita output perhaps one-third
above the Yugoslav
average. Croatia faces considerable economic
problems stemming from:
the legacy of longtime communist
mismanagement of the economy; damage
during the internecine fighting
to bridges, factories, power lines,
buildings, and houses; the large
refugee and displaced population,
both Croatian and Bosnian; and the
disruption of economic ties.
Western aid and investment, especially
in the tourist and oil
industries, would help restore the economy.
The government has been
successful in some reform efforts-partially macroeconomic efforts--partially
macroeconomic stabilization policies-and policies--and it has normalized relations
with its
creditors. Yet it still is struggling with privatization of large
large state enterprises and with bank reform. In 1998, Croatia made
progress in reducing its current account deficit to about 8% of GDP
from 12% the previous year. Economic growth continues to lag,
however, and growing levels of inter-enterprise debt plague the
domestic economy. Four commercial banks were put under government
control and a major conglomerate is teetering on collapse.

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. Croatia faces considerable economic
problems stemming from: the legacy of longtime communist
mismanagement of the economy; damage during the internecine fighting
to bridges, factories, power lines, buildings, and houses; the large
refugee and displaced population, both Croatian and Bosnian; and the
disruption of economic ties. Western aid and investment, especially
in the tourist and oil industries, would help restore the economy.
The government has been successful in some reform efforts--partially
efforts - partially macroeconomic stabilization policies--and policies - and it has normalized relations
with its creditors. Yet it still is struggling with privatization of
large state enterprises and with bank reform. In 1998, Croatia made
progress in reducing its current account deficit to about 8% The recession that began at the end of 1998 continued through most of 1999, and GDP
from 12% the previous year. Economic growth continues to lag,
however, for the year was flat. Inflation remained in check and growing levels the kuna was stable. The death of inter-enterprise debt plague President TUDJMAN in December 1999, and the
domestic economy. Four commercial banks were put under government
control defeat of his ruling Coatian Democratic Union or HDZ party in parliamentary and presidential elections in January 2000 has ushered in a major conglomerate is teetering on collapse. new government committed to economic reform but faced with the challenge of halting the economic decline.

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. Croatia faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges, factories, power lines, buildings, and houses; the large refugee and displaced population, both Croatian and Bosnian; and the disruption of economic ties. Stepped-up Western aid and investment, especially in the tourist and oil industries, would help restore bolster the economy. The government has been successful in some reform efforts - partially macroeconomic stabilization policies - and it has normalized relations with economy emerged from its creditors. Yet it still is struggling with privatization of large state enterprises and with bank reform. The mild recession that began at the end of 1998 continued through most of 1999, and GDP growth for the year was flat. Inflation remained in check and the kuna was stable. The death of President TUDJMAN in December 1999, and the defeat of his ruling Coatian Democratic Union or HDZ party in parliamentary and presidential elections in January 2000 has ushered in with tourism the main factor. Massive unemployment remains a new government committed key negative element. The government's failure to press the economic reform but faced with reforms needed to spur growth is largely the challenge result of halting coalition politics and public resistance, particularly from the economic decline. trade unions, to measures that would cut jobs, wages, or social benefits.

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. Croatia faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges, factories, power lines, buildings, and houses; the large refugee and displaced population, both Croatian and Bosnian; and the disruption of economic ties. Stepped-up Western aid and investment, especially in the tourist and oil industries, would help bolster the economy. The economy emerged from its mild recession in 2000 with tourism the main factor. Massive factor, but massive structural unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is largely the result of coalition politics and public resistance, particularly from the trade unions, to measures that would cut jobs, wages, or social benefits. As a result, the country is likely to experience only moderate growth without disciplined fiscal and structural reform.

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 its mild recession in 2000 with tourism the main factor, but massive structural unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is largely the result of coalition politics and public resistance, particularly from the trade unions, to measures that unions. Opponents fear reforms would cut jobs, wages, or and social benefits. As The government has a result, the heavy backload of civil cases, many involving tenure land. The country is likely to experience only moderate growth without disciplined fiscal and structural reform.

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 its a mild recession in 2000 with tourism tourism, banking, and public investments leading the main factor, but massive structural unemployment way. Unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is high, at over 13 percent, with structural factors slowing its decline. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the result part of coalition politics and the public resistance, particularly and lack of strong support from politicians. Growth, while impressively over 4% for the trade unions. Opponents fear reforms would cut jobs, wages, last several years, has been achieved through high fiscal and social benefits. current account deficits. The government has is gradually reducing a heavy backload back log of civil cases, many involving tenure land. land tenure. The country is likely to experience only moderate growth without disciplined EU accession process should accelerate fiscal and structural reform.

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 over 13 about 14 percent, 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 impressively over about 4% for the last several years, has been achieved through high fiscal and current account deficits. The government is gradually reducing a heavy back log of civil cases, many involving land tenure. The EU accession process should accelerate fiscal and structural reform.

Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, 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 14 percent, 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 impressively impressive at about 3% to 4% for the last several years, has been achieved stimulated, in part, through high fiscal deficits and current account deficits. The government is gradually reducing a heavy back log of civil cases, many involving land tenure. rapid credit growth. The EU accession process should accelerate fiscal and structural reform.

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 5% 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.

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, Between 2000 and 2007, however, Croatia's economic fortunes have begun began 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. While long term growth prospects for the economy remain strong, Croatia will face significant pressure as a result of the global financial crisis. Croatia's high foreign debt, anemic export sector, strained state budget, and over-reliance on tourism revenue will result in higher risk to economic stability over the medium term.

Once Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war as war. The country's output during that time collapsed and the country Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve slowly, 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 Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover. Difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit and deficit, uneven regional development. development, and a challenging investment climate. The state retains new government has announced a large role more flexible approach to privatization, including the sale in the economy, as privatization efforts often meet stiff public and political resistance. coming years of state-owned businesses that are not of strategic importance. 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. While long term growth prospects for the economy remain strong, lag. Croatia will face significant pressure as a result of the global financial crisis. crisis, due to reduced exports and capital inflows. Croatia reentered a recession in 2012 and Zagreb cut spending, particularly on social programs. Croatia's high foreign debt, anemic export sector, strained state budget, and over-reliance on tourism revenue will result in higher risk to hinder economic stability progress over the medium term.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war. The country's output during that time collapsed and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began 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 remained tame and the currency, the kuna, stable. Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover. Difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit, uneven regional development, and a challenging investment climate. The new government has announced a more flexible approach to privatization, including the sale in the coming years of state-owned businesses that are not of strategic importance. While macroeconomic stabilization has largely been achieved, structural reforms lag. Croatia will face significant pressure as a result of the global financial crisis, due to reduced exports and capital inflows. Croatia reentered a recession in 2012 2012, and Zagreb cut spending, particularly on social programs. spending. The government also raised additional revenues through more stringent tax collection and by raising the Value Added Tax in February 2012. On 1 July 2013 Croatia joined the EU, following a decade long application process. Croatia will be a member of the European Exchange Rate Mechanism until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. Croatia's high foreign debt, anemic export sector, strained state budget, and over-reliance on tourism revenue will could hinder economic progress over the medium term. medium-term.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war. The country's output during that time collapsed and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began 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 remained tame and the currency, the kuna, stable. Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover. recover; economic growth was stagnant or negative in each year since 2009. Difficult problems still remain, including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. The new government has announced a more flexible approach to privatization, including the sale in the coming years of state-owned businesses that are not of strategic importance. While macroeconomic stabilization has largely been achieved, structural reforms lag. Croatia will face significant pressure as a result of the global financial crisis, due continues to face reduced exports and capital inflows. Croatia reentered a recession in 2012, and Zagreb cut spending. The government also raised additional revenues through more stringent tax collection and by raising the Value Added Tax in February 2012. foreign investment. On 1 July 2013 Croatia joined the EU, following a decade long decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. Croatia's EU accession has increased pressure on the government to reduce Croatia’s relatively high foreign public debt, strained state budget, which triggered the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and over-reliance on tourism revenue could hinder economic progress over the medium-term. government also raised additional revenues through more stringent tax collection and by raising the Value Added Tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war. The country's output during that time collapsed collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve 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 remained tame and the currency, the kuna, stable. Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover; economic growth was stagnant or negative in each year since 2009. Difficult problems still remain, including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. Croatia continues to face reduced foreign investment. On 1 July 2013 Croatia joined the EU, following a decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt, which triggered the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and the government also raised additional revenues through more stringent tax collection and by raising the Value Added Tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve 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 remained tame and the currency, the kuna, stable.
Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover; economic growth was stagnant or negative in each year since 2009. Difficult problems still remain, remain including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. Croatia continues to face reduced foreign investment.
On 1 July 2013 2013, Croatia joined the EU, following a decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt, which triggered the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and the government also raised additional revenues through more stringent tax collection and by raising the Value Added Tax. value-added tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve with moderate but steady GDP growth between 4% and 6% 6%, led by a rebound in tourism and credit-driven consumer spending. Inflation over the same period remained tame and the currency, the kuna, stable.
Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover; is slowly recovering; economic growth was stagnant or negative in each year since 2009. 2009, but picked up in 2015-16. Difficult problems still remain including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. In 2016 Croatia continues demonstrated a commitment to face reduced improving the business climate, simplifying its tax code to stimulate growth from domestic consumption and foreign investment. Even before 2016, Croatia has worked to become a regional energy player and plans to import liquefied natural gas through a prospective import terminal and re-export it to European consumers.
On 1 July 2013, Croatia joined the EU, following a decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism Mechanism, with its currency effectively pegged to the euro, until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt, which triggered the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and the government also raised additional revenues through more stringent tax collection and by raising the value-added tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success.

Though still one of the wealthiest of the former Yugoslav republics, Croatia's Croatia’s economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve 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 remained tame and the currency, the kuna, stable.
Croatia experienced an abrupt slowdown in the economy in 2008 and is slowly recovering; 2008; economic growth was stagnant or negative in each year since 2009, between 2009 and 2014, but has picked up in 2015-16. Difficult problems still since the third quarter of 2014, ending 2017 with an average of 2.8% growth. Challenges remain including a stubbornly high unemployment rate, uneven regional development, and a challenging difficult investment climate. climate, an inefficient judiciary, and loss of educated young professionals seeking higher salaries elsewhere in the EU. In 2016 2016, Croatia demonstrated a commitment to improving the business climate, simplifying revised its tax code to stimulate growth from domestic consumption and foreign investment. Even before 2016, Income tax reduction began in 2017, and in 2018 various business costs were removed from income tax calculations. At the start of 2018, the government announced its economic reform plan, slated for implementation in 2019. Tourism is one of the main pillars of the Croatian economy, comprising 19.6% of Croatia’s GDP. Croatia has worked is working to become a regional energy player hub, and is undertaking plans to import open a floating liquefied natural gas through a prospective import (LNG) regasification terminal and re-export it by the end of 2019 or early in 2020 to European consumers.
On 1 July 2013, import LNG for re-distribution in southeast Europe. Croatia joined the EU, EU on July 1, 2013, following a decade-long application accession process. Croatia will be has developed a member of the European Exchange Rate Mechanism, with its currency effectively pegged to the euro, until it meets the criteria plan for joining the Economic and Monetary Union Eurozone accession, and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt, which triggered projects Croatia will adopt the EU’s excessive deficit procedure for fiscal consolidation. Zagreb has cut spending since 2012, and Euro by 2024. In 2017, the Croatian government also raised additional revenues through more stringent tax collection decreased public debt to 78% of GDP, from an all-time high of 84% in 2014, and by raising realized a 0.8% budget surplus - the value-added tax. first surplus since independence in 1991. The government has also sought to accelerate privatization of non-strategic assets, assets with mixed success. Croatia’s economic recovery is still somewhat fragile; Croatia’s largest private company narrowly avoided collapse in 2017, thanks to a capital infusion from an American investor. Restructuring is ongoing, and projected to finish by mid-July 2018.

Though still one of the wealthiest of the former Yugoslav republics, Croatia’s economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve 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 remained tame and the currency, the kuna, stable.
Croatia experienced an abrupt slowdown in the economy in 2008; economic growth was stagnant or negative in each year between 2009 and 2014, but has picked up since the third quarter of 2014, ending 2017 with an average of 2.8% growth. Challenges remain including uneven regional development, a difficult investment climate, an inefficient judiciary, and loss of educated young professionals seeking higher salaries elsewhere in the EU. In 2016, Croatia revised its tax code to stimulate growth from domestic consumption and foreign investment. Income tax reduction began in 2017, and in 2018 various business costs were removed from income tax calculations. At the start of 2018, the government announced its economic reform plan, slated for implementation in 2019.
Tourism is one of the main pillars of the Croatian economy, comprising 19.6% of Croatia’s GDP. Croatia is working to become a regional energy hub, and is undertaking plans to open a floating liquefied natural gas (LNG) regasification terminal by the end of 2019 or early in 2020 to import LNG for re-distribution in southeast Europe.
Croatia joined the EU on July 1, 2013, following a decade-long accession process. Croatia has developed a plan for Eurozone accession, and the government projects Croatia will adopt the Euro by 2024. In 2017, the Croatian government decreased public debt to 78% of GDP, from an all-time high of 84% in 2014, and realized a 0.8% budget surplus - the first surplus since independence in 1991. The government has also sought to accelerate privatization of non-strategic assets with mixed success. Croatia’s economic recovery is still somewhat fragile; Croatia’s largest private company narrowly avoided collapse in 2017, thanks to a capital infusion from an American investor. Restructuring is ongoing, and projected to finish by mid-July 2018.