GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years (2018)
Since the beginning of 2020, the escalation of the COVID-19 crisis in Europe and the measures introduced by public health authorities to limit the contagion’s spread have led to a rapid decline in economic activity.
Uncertainties surrounding the global—and the country’s—outlook are substantial, and risks are tilted to the downside. A further adverse effect on world trade and on Croatia’s GDP are to be expected if the lockdown is prolonged and trade restriction measures due to COVID-19 continue over a long period of time.
Lengthy disruptions in global supply chains and falling demand, especially for travel and tourism—the single most important sector in the Croatian economy—could contribute to an even stronger economic recession. This would also result in a further widening of the fiscal deficit, requiring substantial borrowing and leading to a large increase in public debt.
The social and economic impact of the coronavirus pandemic is further exacerbated by the damaging earthquake that struck the Croatian capital and its surroundings on March 22, 2020. While the results of the damage assessment are still pending, the economic impact is expected to be very severe and reconstruction may take several years.
It is anticipated that Croatia will need to revisit its growth model and focus on specific policies to increase its resilience to exogenous shocks and raise the economy’s growth potential.
Last Updated: Apr 16, 2020