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Economy of Croatia

The economy of Croatia is a developed social market economy. It is one of the largest economies in Southeast Europe by nominal gross domestic product (GDP). It is an open economy with accommodative foreign policy, highly dependent on international trade in Europe. Within Croatia, economic development varies among its counties, with strongest growth in Central Croatia and its financial centre, Zagreb. It has a very high level of human development, low levels of wealth inequality, and a high standard of living. Croatia's labor market has been perennially inefficient, with inconsistent business standards as well as ineffective corporate and income tax policy.

Top Sectors in Croatia

Tourism in Croatia

Tourism is a notable source of income during the summer and a major industry in Croatia. It dominates the Croatian service sector and accounts for up to 20% of Croatian GDP. Annual tourist industry income for 2011 was estimated at €6.61 billion. Its positive effects are felt throughout the economy of Croatia in terms of increased business volume observed in retail business, processing industry orders and summer seasonal employment. The industry is considered an export business, because it significantly reduces the country's external trade imbalance. Since the conclusion of the Croatian War of Independence, the tourist industry has grown rapidly, recording a fourfold rise in tourist numbers, with more than 10 million tourists each year. The most numerous are tourists from Germany, Slovenia, Austria and the Czech Republic as well as Croatia itself. Length of a tourist stay in Croatia averages 4.9 days.

Agriculture in Croatia

Croatian agricultural sector subsists from exports of blue water fish, which in recent years experienced a tremendous surge in demand, mainly from Japan and South Korea. Croatia is a notable producer of organic foods and much of it is exported to the European Union. Croatian wines, olive oil and lavender are particularly sought after. Value of Croatia's agriculture sector is around 3.1 billion according to preliminary data released by the national statistics office. Croatia has around 1.72 million hectares of agricultural land, however totally utilized land for agricultural in 2020 was around 1.506 million hectares, of these permanent pasture land constituted 536 000 hectares or some 35.5% of total land available to agriculture. Croatia imports a significant quantity of fruits and olive oil, despite having large domestic production of the same. In terms of livestock Croatian agriculture had some 15.2 million poultry, 453 000 Cattle, 802 000 Sheep, 1.157 000 Pork/Pigs, 88 000 Goats. Croatia also produced 67 000 tons of blue fish, some 9000 of these are Tuna fish, which are farmed and exported to Japan, South Korea and the United States.

Transportation in Croatia

The highlight of Croatia's recent infrastructure developments is its rapidly developed motorway network, largely built in the late 1990s and especially in the 2000s. Croatia had completed more than 1,300 kilometres (810 miles) of motorways, connecting Zagreb to most other regions and following various European routes and four Pan-European corridors. The busiest motorways are the A1, connecting Zagreb to Split and the A3, passing east-west through northwest Croatia and Slavonia. A widespread network of state roads in Croatia acts as motorway feeder roads while connecting all major settlements in the country. The high quality and safety levels of the Croatian motorway network were tested and confirmed by several EuroTAP and EuroTest programs.


Croatia - Key Economic Indicators

Exports and Imports

Croatia's exports mainly consist of machinery, transport equipment, and miscellaneous manufactured articles. According to recent data, exports amounted to approximately $18 billion, with machinery and transport equipment accounting for around 34% of total exports. Conversely, Croatia imports primarily machinery, transport equipment, and chemicals, with imports totaling approximately $24 billion. Notably, machinery and transport equipment make up roughly 30% of total imports.

Infrastructure

Croatia has made significant strides in developing its infrastructure, particularly its motorway network. With over 1,300 kilometers of motorways completed, Croatia boasts a well-connected road system, facilitating transportation and trade within the country and with neighboring regions. Additionally, Croatia has invested in bridges and other transportation infrastructure to enhance connectivity and efficiency.

Balance of Trade

Croatia maintains a trade deficit, indicating that its imports exceed its exports. This deficit is notable, with imports surpassing exports by approximately $6 billion. While exports play a crucial role in Croatia's economy, the trade deficit underscores the country's reliance on imported goods to meet domestic demand and support various industries.

Fiscal Policy

Croatia's fiscal policy involves government spending and taxation aimed at achieving economic stability and growth. Government expenditure accounts for around 45% of GDP, with key areas of spending including healthcare, education, and infrastructure development. Regarding taxation, Croatia has a progressive income tax system, with tax rates ranging from 12% to 45% based on income levels.

Monetary Policy

The Croatian National Bank (HNB) implements monetary policy to regulate the country's money supply, interest rates, and inflation. The HNB employs various tools, including open market operations and reserve requirements, to achieve its monetary policy objectives. In recent years, the HNB has maintained a cautious approach to monetary policy to support economic stability and mitigate inflationary pressures.

Trade Agreements

Croatia is a member of the European Union (EU), benefiting from trade agreements within the EU single market. Additionally, Croatia has trade agreements with other countries and regions, facilitating trade and economic cooperation. These agreements aim to reduce trade barriers, promote investment, and enhance market access for Croatian goods and services.

Environmental Regulations

Croatia has implemented environmental regulations to safeguard its natural resources and mitigate environmental degradation. These regulations encompass various sectors, including energy, transportation, and waste management. Croatia's commitment to environmental protection aligns with international agreements and initiatives aimed at addressing climate change and promoting sustainable development.

Tax System in Croatia

Capital Gains Tax: Croatia imposes a capital gains tax on profits earned from the sale of assets such as stocks, bonds, real estate, and other investments. The capital gains tax rate is typically 24%, but it may vary based on factors like the type and duration of the investment.
Corporate Tax Rate: The corporate tax rate in Croatia is 18%. It applies to the profits earned by businesses operating within the country, regardless of whether they are domestic or foreign corporations. This rate aims to maintain a competitive business environment and encourage investment.
Sales Tax: Croatia levies a value-added tax (VAT) on the sale of goods and services. The standard VAT rate is 25%, with reduced rates of 13% and 5% applied to specific goods and services considered essential or of lower economic significance.
Property Tax: Property tax in Croatia is imposed on the ownership of real estate, including land, buildings, and other immovable property. The tax rate varies depending on factors like the location, size, and type of property, with rates determined by local authorities.
Payroll Tax: Croatia imposes payroll taxes on wages and salaries earned by employees. These taxes contribute to funding social security programs and other social benefits. The payroll tax rate is progressive, with higher-income earners subject to higher tax rates.
Tax Deductions and Credits: Croatia offers various tax deductions and credits to individuals and businesses to reduce their tax liability. These deductions and credits may include allowances for expenses such as education, healthcare, charitable contributions, and business investments, aimed at promoting economic growth and social welfare.
Tax Compliance: The Croatian tax administration oversees tax collection and ensures compliance with tax laws. It implements measures like audits, investigations, and penalties for non-compliance to maintain the integrity of the tax system and uphold taxpayer obligations.
Tax Burden: The tax burden in Croatia represents the total amount of taxes paid by individuals and businesses relative to their income or profits. It reflects the combined impact of various taxes and influences economic behavior and competitiveness.

531 Live Notices for Croatia ....

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Provision Of Energy Services For The Purpose Of Improving The Energy Efficiency Of The Eugen Kvaternik Elementary School Building, Školska 4, 10410 Velika Gorica Within The Framework Of The Project "Energy Renovation Of Public Sector Buildings By Contracting Energy Services".
country Croatia
posting date19 Nov 2024
deadline18 Dec 2024
Works On The Construction Of 3 Typical Buildings With A Total Of 57 Apartments At The Sisak Location, Ivana Bakrana Street
country Croatia
posting date19 Nov 2024
deadline02 Dec 2024
Monitoring Of The State Of The Environment And The Ecological Network For The Junction On The State Road Marked Dc8 And The Connecting Road Junction Vučevica On The A1 Highway - Junction On The State Road Marked Dc8
country Croatia
posting date19 Nov 2024
deadline18 Dec 2024
Transport Of Passenger Catamaran - New Construction 35.6 M From Batam To Croatia
country Croatia
posting date19 Nov 2024
deadline25 Nov 2024
Mobile Biostabilizer (1 Pc)
country Croatia
posting date19 Nov 2024
deadline18 Dec 2024
Procurement Of Mattresses, Pillows And Duvets
country Croatia
posting date19 Nov 2024
deadline08 Jan 2025
Voice And Data Services In The Mobile Network
country Croatia
posting date19 Nov 2024
deadline20 Dec 2024
Provision Of Energy Services For The Purpose Of Improving The Energy Efficiency Of The Pgp Terezino Polje Building, Terezino Polje Bb, Gornje Bazje Within The Project "Energy Renovation Of Public Sector Buildings By Contracting Energy Services".
country Croatia
posting date19 Nov 2024
deadline18 Dec 2024
Procurement Of Heating Oil And Fuel For Vehicles - Group 2.
country Croatia
posting date19 Nov 2024
deadline17 Dec 2024
Construction Of Part Of The Water Utility Infrastructure In The City Of Đurđevac And The Municipality Of Kapela
country Croatia
posting date19 Nov 2024
deadline22 Nov 2024
Ldpe Bags For Pet, Al/Fe And Glass Packaging Waste
country Croatia
posting date19 Nov 2024
deadline25 Nov 2024
Laboratory Equipment Procurement: Photon Detection System With Superconducting Nanowires
country Croatia
posting date19 Nov 2024
deadline10 Dec 2024
Services In The Development Of The Zelovo Hydropower Plant Project
country Croatia
posting date19 Nov 2024
deadline03 Dec 2024
Truck And Trailer Tires
country Croatia
posting date19 Nov 2024
deadline22 Nov 2024
Soft Drinks And Water Groups Of Procurement Items: Group 1. Soft Drink (Cocktail) Group 2. Fruit Nectars (Clear) Group 3. Fruit Nectars (Cloudy) Group 4. Fruit Juice (Orange) Group 5. Natural Spring/Mineral Still Water
country Croatia
posting date19 Nov 2024
deadline03 Dec 2024
Procurement Of Project-Technical Documentation Preparation Services By Groups As Part Of The Apis Project - Interpretation-Education And Research Center For The Development Of Beekeeping In The Area Of Dubravac-Neretva County
country Croatia
posting date19 Nov 2024
deadline09 Dec 2024
Maintenance Of Cis Equipment On Platforms, Ru And Intercom
country Croatia
posting date19 Nov 2024
deadline04 Dec 2024
Equipment - Mass Spectrometry System
country Croatia
posting date19 Nov 2024
deadline16 Dec 2024
Service Of Professional Supervision And Coordinator Ii Of Occupational Safety During The Design And Execution Of The Complete Renovation Of The Merkur Clinical Hospital Building
country Croatia
posting date19 Nov 2024
deadline04 Dec 2024
Services And Equipment In A Fixed Electronic Communication Network
country Croatia
posting date19 Nov 2024
deadline22 Nov 2024

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