Innovative property investments
Investment Property in Croatia
Buying Guide
Economic Overview
Tourism driven
Croatia has a mainly service-based economy and with 8.5 million visitors a year, tourism is a major contributor to this.
There is some light industry, although the country isn't known for this, and there is no ready supply of raw materials to promote heavy industrial activities.
Emerging from Communism
The country is emerging from the ravages that Communism visited upon it, and as such the post-communist economy is still catching up with the rest of Europe.
War damages and de-industrialisation have slowed the development process further, while the old markets of the rest of Yugoslavia have disappeared.
The country's economy and investors are adapting to the changing market and the different demand of exporting to the west of Europe rather than the east.
Turning to the European market
With Croatia preparing to join the European Union, Europe has become the most important market for the country, both for tourist visitors and for export markets.
This has also led to the economy beginning to recover some ground and become more stable.
In 2005, the Stabilization and Association Agreement with the EU came into force, further strengthening ties between Croatia and Europe, advancing the case for accession and promoting economic recovery.
Change required
The Croatian economy is not without its problems though.
The estimated GDP is 12,158 USD per capita, just 42% of the EU average.
Unemployment is high, running at over 16% of the population, and economic reforms are not coming quickly enough.
There is a severe backlog in the judiciary system, and the processes for buying and owning land is complicated.
There is also a problem with a deficit of exports, and Croatia has high debt levels with other countries, running at a level of around 50% of the GDP.
Employment
Employment demographics are relatively simple - up to 65% of the working population is involved in the service industries, around 30% in industry, and the rest in the traditional agricultural occupations which still survive.
The high unemployment rate of 16% is likely to be absorbed reasonably quickly as investment grows and demobilised armed forces personnel retrain into new professions.
Key facts
- Service-based economy, to which 8.5 million annual visitors contribute significantly
- The Stabilization and Association Agreement with the EU came into force in 2005, further strengthening ties between Croatia and Europe, advancing the case for accession and promoting economic recovery
- Europe is now the country’s most important market, both for tourist visitors and for export markets, assisting its economic recovery and stability
- Estimated GDP is 12,158 USD per capita, just 42% of the EU average
- High unemployment is likely to be absorbed fairly quickly due to investment and retraining strategies
Downloadable Reports and Documents
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