GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years (2018)
Croatia’s economy is recovering from the severe effects of the global financial crisis, with growth averaging around 3 percent over the past three years. Public finances have improved significantly. Joining the European Union (EU) in mid-2013 has helped boost exports from below 40 percent of GDP in 2008 to above 50 percent in 2018.
Positive economic trends, underpinned by government action on public financial management, have created an environment in which further reforms can be successful. But while current conditions support potential growth rates of around 2.5 percent over the medium term, this is not enough to reignite or accelerate the pace of convergence with other EU countries.
Croatia can both increase returns on public investment—by more effectively using EU grant funds—and attract strategic private investment to create economic opportunities. With the accession to the Euro Area on its agenda, Croatia is planning to implement ambitious reforms to boost growth, build economic resilience, and maximize the benefits of Euro Area membership. Critical reform fields include investments in human capital and natural resource management to preserve and leverage Croatia’s natural assets. However, the success of these reforms will depend on strengthening the country’s institutions.
Last Updated: Apr 12, 2019