GDP, current $ billion
GDP per capita, current $
Life Expectancy at Birth, years
Croatia's process of economic convergence continues, with GDP per capita (in Purchasing Power Parity) in 2022 reaching 73% of the average European Union (EU) member states’ level. The country has recorded the highest post-pandemic recovery of all EU member states (with the notable exception of Ireland). This solid performance is largely due to the post-COVID revival of global demand for travel, but also robust goods exports and personal consumption. However, as this high level of demand for services in tourism is unlikely to be sustained in the medium to long run, it will be important to address key structural challenges to increase productivity and accelerate long-term growth.
These challenges are linked to low levels of Research & Development (R&D) investments, innovation and technology adoption, weaknesses in managerial and organizational practices, administrative capacity and judicial quality and efficiency. In addition, negative demographic trends and a tight labor market call for improvements in education and labor market policies to increase the labor supply and improve the quality of human capital.
On the upside, in January 2023, in the 10th year of EU membership, Croatia became the 20th EU member state to join the euro area and has entered the Schengen Area, achieving further integration with its European partners and achieving its key strategic objectives.
Last Updated: Oct 10, 2023