Croatia Economy

March 15, 2010Croatiaby EconomyWatch Content

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Croatia is located across central and south-eastern Europe. It stands at the crossroads of the Adriatic Sea, the Balkans and Pannonian Plain. Croatia is bordered by Hungary, Slovenia, Bosnia and Herzegovina, Serbia and Montenegro.

The International Monetary Fund (IMF) classifies Croatia as an emerging and developing economy, while The World Bank classifies the country as a high income economy.

Croatia’s total land area is 56,594 square kilometers and the country has a population of 4,489,409, according to the 2009 consensus.

Croatia Economy

Croatia was at one time, considered the richest of all Yugoslav republics until the country was devastated after the Berlin Wall was destroyed and in the ensuing civil war that followed between 1991-1995.  Investments from Eastern and Central Europe began to trend away from Croatia. However since 2000, the economy had started to improve.

Croatia GDP Growth

The Croatian economy received a boost starting from 2000 when tourism picked up and was further helped by a stimulus from the credit boom, from newly privatized banks. Road construction and transportation also helped the country tap into the tourism potential that it boasts today.

Croatia experienced economic challenges starting in 2008 during  the world’s financial crisis. However, the Gross Domestic Product (GDP) has improved, primarily due to an increase in tourism. Tourism was responsible for almost 66 percent of growth in 2008. Industry and agriculture sectors also contribute to Croatia’s economy.

In 2010, Croatia GDP was US$ 59.917 billion, shrinking at a rate of -1.456 percent due to the after-shocks of the economic crisis. However Croatia’s economy is expected to stabilize in 2011 as GDP is forecast to grow 1.64 percent to US$ 61.441 billion, mainly through tourism.

 

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