Financial situation in
Croatia
Ivan Dolinić (Jackson)
Student ID: MA2N0216
23.12.2014.
Croatia
Croatia in EU
Became a 28th member of the EU on July 1st 2013
Croatia’s competitiveness to compete in the large EU market
and maximize the opportunities that membership brings
Financial crisis
global financial crisis of 2008-09
Croatian economy grew at a healthy 4-5% annually
economic and social opportunities dramatically improved
lost over 12 % of its output in last 6 years of crisis
Gross Domestic Product (GDP)
estimated to fall by 0.5% in 2014
optimism about the prospect for growth in 2015, with exports
projected to pick up in the Eurozone and private investments
expected to increase
The privatization of large state-owned enterprises (SOEs)
and the availability of EU funds (in net terms about 2% of
GDP per year) should also help growth prospects in the
medium term
Unemployment
17% at the end of 2013
youth unemployment at over 40%
the highest in Europe
The private sector has been bearing the brunt of the crisis
with most jobs lost in manufacturing, construction, and trade
Croatian economy
less competitive than its peers
From 2007 to 2013, Croatia’s private sector share of GDP
remained at 70%
actions are needed to liberalize the labor market, jump-start
enterprise restructuring and the kind of new business
creation and old firm exits required for the economy to
reorient itself toward one reliant on knowledge, innovation,
and transit-related services to maximize its geo-economic
advantage as Europe’s transport hub
Future forecast
Real GDP growth in 2015 is forecast to be just above zero
the positive contribution of external demand is forecast to
decrease
In 2016, a rebound in investment is expected to push growth
more firmly into positive territory
Sources of income
The industrial sector with exports of over €1 billion annually
is dominated by shipbuilding which accounts for over 10% of
exported goods
Food processing and chemical industry also account for
significant portions of industrial output and exports
Industrial sector represents 27% of Croatia’s total economic
output while agriculture represents 6%
Croatian agricultural sector subsists from exports of blue
water fish
Sources of income
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
Tourism is traditionally a notable source of income, particularly
during the summer months, but also more recently during the
winter months as well, due to an increase in popularity of snow
sports such as skiing
over 10 million foreign tourists annually, tourism generates revenue
in excess of €7 billion
ranked among the top 20 most popular tourist destinations in the
world and was voted world's top tourism destination in 2005 by
Lonely Planet