GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years
After a contraction of 8.1 percent in 2020 due to the COVID-19 pandemic and two devastating earthquakes, the country recorded an annual GDP growth of 10.4 percent in 2021, reaching the pre-crisis level of economic activity already by mid-year. Although risks related to the pandemic seem to be declining, the Russian invasion of Ukraine brings new challenges, including weaker external demand (both through direct trade linkages with Russia and Ukraine and indirectly via the impact on Croatia’s main trading partners) and higher food and energy prices, which will have negative effects on real disposable incomes and business and consumer confidence. Croatia quickly responded to the humanitarian crisis, organizing reception centers for refugees and setting up a special task force to coordinate the arrival and integration of displaced persons.
In this challenging environment, European Union (EU) structural and investment funds, as well as the new EU initiatives, represent an opportunity for Croatia to accelerate its income convergence with the rest of the EU. The Croatian National Recovery and Resilience Plan (NRRP) serves as a strategy for the Recovery and Resilience Facility funds. The Plan includes a bold reform agenda for the medium term and provides the country with a unique opportunity to close some of the reform and investment gaps that are still holding it back. If this plan is fully and efficiently implemented, Croatia can accelerate its convergence with the EU, create better foundations for long-term growth, and develop a more resilient, greener, and equal society.
Last Updated: Apr 18, 2022