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Croatia Croatia

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Croatia

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EconomicPoliticalStructural

Croatia – Quick View
ECR score56.51 (Mar 2011)
ECR rank59 (Mar 2011)
Economic
GDP 2010USD 16.06 billion
GNI per capita PPPUSD 16,389
FDI inflow 2010USD 32,896.59 million
Inflation 20100.9%
Central bank assets 2009USD 15,089.78 million
Unemployment rate 201011.5%
Government deficit 2010USD 2,231.17 million
Political
Government typeParliamentary democracy
Recent political crisisNA
Economic freedom score82nd
Freedom of information score62nd
Corruption perception index62nd
Population balanceUnder 14 – 15.3%
Structural
Birth rate10.1 (per '000)
Population balanceOver 60 – 22.91%
Life expectancy yearsMale 71.1 years
Life expectancy yearsFemale 78.1 years
Mortality rate5.3 (per '000)
Literacy rate98.6%
Internet access50%

[Top] Economic Overview

Gross domestic product (GDP)

The GDP for 2010 was registered at USD 60.85 billion, as compared to USD 63.43 billion in 2009.

Croatia GDP at current prices 

(Source: dzs.hr, World Bank)

Real GDP growth rate

The real GDP growth rate in 2010 was -1.19%, as compared to -5.99% in 2009.

 Croatia Real GDP growth rate

(Source: dzs.hr, World Bank)

GDP per capita

In 2010, the country’s GDP per capita was USD 13,773.62, as compared to USD 14,322.61 in 2009.

Croatia GDP per capita 

(Source:dzs.hr, World Bank)

Gross national income (GNI) per capita, PPP

The GNI per capita, PPP, was USD 18,680 in 2010, as compared to USD 19,040 in 2009.

 Croatia GNI per capita, PPP

(Source: UNDP, World Bank)

Income tax rate

Income tax on individual incomes in Croatia is taxed progressively from about 15% to 45%.

 

Income Tax Rates 2010

Monthly Income (HRK)

Tax %

1- 43,200

15

43,201-108,000

25

108,001-302,400

35

over 302,401

45

(Source: worldwide-tax)

Additional individual income tax, known as crisis tax, is also applicable. Under this income of HRK 3,001 to HRK 6,000 is taxed at 2%, and income above HRK 6,001 is taxed at 4%.

Corporate tax rate

Standard corporate tax in Croatia is 25%.

 

Tax contribution

Total tax rate (% profit)

Corporate income tax

11.4

Social security tax

19.4

Forest contribution

4.28

Fuel tax

0.4

Total

32.5

(Source: worldwide-tax, doingbusiness.org)

Inflation rate

Inflation rate in Croatia reported a decline of 0.9% in August 2010. The decrease is primarily due to a decrease in food prices and industrial non-food prices, with the exception of energy.

Croatia Inflation rate

(Source: hnb.hr)

Foreign direct investment (FDI) inflow

The foreign direct investment inflow (FDI) in Croatia for 2010 was USD 40,755.64 million, as compared to USD 32,284,68 million in 2009.Croatia FDI inflow

(Source:hnb.hr, World Bank)

Portfolio investment

Portfolio Investment (EUR million)

 

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

2009 Q2

2009 Q1

Portfolio investment, Net

-2,961.9

 

-2,289.8

 

-1,880.7

 

-2,424.8

 

-1,838.8

 

-2,114.0

 

-1,943.9

 

(Source: hnb.hr)

 

Banking sector assets

The total asset in the banking sector amounted to HRK 79,558.48 million, which is a 12.83% increase from the previous year.

 

Banking sector assets (HRK ‘000)

Assets

2009

2008

Cash and current accounts with other banks

1,764,619

1,473,516

Due from other banks

17,544,652

13,186,457

Trading securities

54,084,538

52,136,879

Loans

103

111

Balances with the International Monetary Fund

5,335,647

2,904,533

Equity investments

57,764

57,441

Accrued interest and other assets

180,608

174,046

Tangible and intangible assets

590,554

581,531

TOTAL ASSETS

79,558,485

70,514,514

(Source:hnb.hr)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

The consumer price index (CPI) for January 2011 (taking the consumer price index for 2005 = 100 as a base) reached 117.7, as compared to 115.5 in January 2010. 

Croatia Consumer Price Index

(Source: dzs.hr)

Producer Price Index (PPI)

 Croatia Producer Price Index

At end of 2010, the Producer Price Index (PPI) in industrial products registered at 122.1, which is a decrease from the previous month

(Base year 2005 = 100)

(Source: dzs.hr)

Interest rate on time deposits

 

Interest on time deposits (%)

 

Time Deposits

Foreign currency time deposits

2010 (Until August)

2.19

3.16

2009

6.45

3.81

2008

5.38

4.20

2007

4.45

4.08

2006

3.27

3.44

2005

3.81

2.94

(Source: hnb.hr)

Money supply (currency in circulation)

In monetary aggregates for 2010, M1 was HRK 47,181.70 million, which includes: currency outside the banks, deposits by other banking institutions and other domestic sectors in the Croatian National Bank (CNB). M4 is the broader money, which was HRK 223,094.60 for the year 2009.  It is comprised of M1, foreign currency deposits, time and saving deposits, bonds, and money market instruments.

Croatia Money Aggregates

(Source:hnb.hr) 

Public Debt

From 2007 to 2009, the country’s public sector debt has increased. At the end of November 2010, the public sector debt was registered at EUR 13,656.6 million.

Croatia Public sector debt

(Source:hnb.hr)

Total Expenditure

The total expenditure of the country in 2010 was HRK 121,874.00 million.

Croatia Total expenditure

(Source:mfin.hr, mfin.hr)

Exchange rate

The exchange rate for 2010 was registered at 7.34 (HRK per USD). 

Croatia Exchange rate

(Source: mfin.hr, mfin.hr)

Government finances

 Fiscal balance

The fiscal deficit for 2010 is estimated to be HRK 12,277.24 million. The country’s fiscal deficit decreased by 37.56% from the previous year.Croatia Fiscal balance 

(Source: mfin.hr)

Total revenue

In 2009, the country’s total revenue declined by 5% from the previous year. In 2010, the country's total revenue was HRK 107,466.35 million.

Croatia Total revenue

(Source:mfin.hr, mfin.hr)

Tax revenue

The country’s tax revenue for 2009 was HRK 63,678.9 million, which is a 8.47% decrease from the previous year. The taxation revenue includes taxes on income, profits, capital gains, property, goods and services, international trade and transactions, and other taxes. In 2010, the tax revenue amounted to HRK 62,856.58 million.

(Source: mfin.hr)

Total grants

In 2009, the total grants received amounted to HRK 616.3 million, which is a 31.51% increase from the previous year. In August 2010, the total grants received from other countries was HRK 310.1 million.

In 2010, the total grants offered to other countries, international organizations, and other general government units was HRK 3,787.1 million. Croatia Total grants

(Source: mfin.hr)

Current account balance

The current account for 2010 recorded as deficit of EUR 582.1 million, as compared to a deficit of EUR 2,407.7 million in 2009.

Croatia Current account balance

(Source:hnb.hr)

Balance of Payments

Balance of Payments (EUR million)

 

2010 Q4

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

2009 Q2

2009 Q1

Current account

-582.1

1,848.8

 

-182.1

 

-1,393.3

 

-1,531.0

 

1,790.5

 

-878.9

 

-1,857.6

 

Capital and Financial account

1,467.9

-845.7

 

-45.6

 

910.4

 

1,013.0

 

-567.9

 

531.9

 

2,327.8

 

Net errors and omissions

-885.8

-1,003.1

 

227.7

 

482.9

 

518.1

 

-1,222.6

 

347.0

 

-470.2

 

(Source:hnb.hr)

[Top] Labour Force and Employment Overview

Labour force

In the fourth quarter of 2010, the total labour force was 1,717,000, as compared to 1,738,000 in the corresponding period of 2010.

Croatia Labour force 

(Source:dzs.hr, dzs.hr)

Employed population

In the fourth quarter of 2011, the total employed population was 1,479,000 people. Of this total employed population, 221,000 were employed in agriculture, 425,000 employed in industries and 832,000 were employed in services.

(Source: dzs.hr, dzs.hr)

Unemployment Rate

 Croatia Unemployment rate

The unemployment rate for Q4 2011 was registered at 13.9%, as compared to 12.2% in previous quarter, of this 37.5% were 15-24 years old and 13.5% were 25-49 years old.

(Source: dzs.hr, dzs.hr)

Minimum wage

The average monthly net wages were increasing from 2000 to 2008. However, in 2009 the average monthly net wages decreased by 0.89%.Croatia Minimum wage

(Source: hnb.hr)

Level of unionisation

The Union of Autonomous Trade Unions represents the majority of workers in the country. It includes 22 trade unions and 21 branch offices. It has a membership of 400,000.

(Source:fedee)

[Top] Political Stability

Government stability

The Republic of Croatia’s constitution was proclaimed in December 1990. Since then Croatia has had a sovereign and democratic system of government.

The Croatian government is organised into legislative, executive, and judicial branches.

The legislative and executive power in the country rests with the Parliament, also known as the Sabor.  The Croatian Parliament is unicameral and is comprised of 153 members. These members are directly elected for a term of four years.

Presidential elections are held every five years. The last elections were in 2010, and Ivo Josipovic was elected.  Jadranka Kosor is the current prime minister, and was elected in 2009.

In the country, formation of political parties is free. The major political parties in the country include:

  • Croatian Democratic Union (HDZ)
  • Social Democratic Party of Croatia
  • Croatian Peasant Party (HSS)
  • Croatian Social Liberal Party
  • Croatian People's Party
  • Croatian Democratic Alliance of Slavonia and Baranja (HDSSB)
  • Istrian Democratic Assembly
  • Croatian Party of Rights (HSP)
  • Croatian Party of Pensioners (HSU)
  • Representatives of National Minorities

(Source: mvpei.hr, BBC)

Regulatory environment

Croatia Economic Freedom Indices

The country's regulatory environment system remains inefficient. Howver, the global trade and competitive tax reforms have increased the modernisation of the economy and allowed fo economic expansion.

Croatia's economic freedom score is 61.1, making the economy the 82nd freest in the 2011 Index of Economic Freedom. The overall score is 1.9 points higher than the previous year. However, the overall score remains below the regional average.

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Croatia is ranked 62nd on the index, which indicates that the level of corruption in public departments is relatively low.

The CPI ranking of the country slipped from 66th in 2009 to 62nd in 2010, with a score of 4.1 and a confidence range of 3.4 to 5.2, which indicates that the perceived levels of corruption have decreased in the country.

(Source: transparency.org)

Freedom of information

Independent and accurate reporting is not witnessed in the Croatian media. A public survey in 2008 revealed that the general public considered journalists to be influenced by political parties.

The major newspapers in the country include:

  • Vecernji list
  • Jutarnji list
  • Slobodna Dalmacija
  • Novi list
  • Glas Istre
  • Poslovni dnevnik
  • Business.hr
  • Globus
  • Nacional

Croatia is ranked 62nd in the World Press Freedom Index 2010 with a score of 17.50, indicating that the media in Croatia is restricted.

(Source: BBC, rsf.org)

Judicial system

The country judicial system is independent and exercised through various courts. The Supreme Court of the Republic of Croatia is the highest authority in judicial matters.

The Constitutional Court includes thirteen judges, who are selected by the Croatian Parliament for eight years.

In Croatia, there are 90 courts of general jurisdiction including a Supreme Court, an Administrative Court, 21 County courts, and 67 Municipal courts.

There are 14 commercial courts which include one High Commercial Court and 13 Commercial courts.

The total magistrate’s courts in the country are 115, which include one High Magistrates’ Court and 114 other magistrates’ courts. In 2009, the country had 422 magistrates.

(Source: mvpei.hr, dzs.hr)

[Top] Demographic Overview

The total population of Croatia for 2010 was 4,429,078.

(Source: World Bank)

The gender ratio in the country is slightly imbalanced, i.e. there are about 93 males for every 100 females in the country.

(Source: UN)

Croatia Population by gender

(Source:Worldbank)

In 2010, the birth rate was registered at 9.8 per thousand inhabitants.

(Source: World Bank)

According to the country’s census, the average age for men is 37.5 years, and 41.0 years for women. The average life expectancy at birth in Croatia is 73.5 years for men and is 79.6 years for females.

The mortality rate of infants (per thousands live births) in 2010 was registered at 4.7.

(Source: World Bank)

Croatia Population by age structure

(Source:dzs.hr)

According to estimates at the end of 2010, males and females below 14 was 347,000 and 330,000 respectively. For 15 to 64 year olds there were 1,372,000 males and 1,362,000 females. For people 65 and above, the country had 416,000 males and 598,000 females.

The international migrant stock till mid 2010 was recorded at 0.7 million people. This was approximately 15.9% of the entire population.

The latest figures reveal that the urban population in the country grew at an annual rate of 0.2% from 2005 to 2010. For the same period, the rural population declined at 0.7%.

(Source: UN)

About 89.63% of the population are Croats. The other ethnic groups include: Albanians, Austrians, Bosnians, Bulgarians, Montenegrins, Czechs, Hungarians, Macedonians, Germans, Poles, Romanians, Russians Slovaks, Slovenes, Serbs, Italians, Turks, Ukrainians and Jews.

(Source:dzs.hr)

The country ranks 51st out of 169 countries on the Human Development Index of 2010 as conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source:UNDP)

[Top] Soft Infrastructure

Education/literacy rate

The country’s literacy rate is 98.6%. It is compulsory for children to complete 8 years of education.

(Source:guardian.co.uk,mzos.hr)

Education resources

The Croatian education system includes the following:

  • Preschool education
  • Elementary education
  • Secondary education
  • Higher education

The education system in the country is supervised by the Ministry of Science, Education and Sports. Education is considered as a priority by the government. The educational policy gives special attention to the country’s minority groups and focuses on the decentralisation of funding for schools. The World Bank is assisting the Ministry with an Education Sector Support Program. The program will be funded by a World Bank loan to the government.

(Source: mzos.hr)

Healthcare resources

The healthcare system includes health services at the primary, secondary and tertiary levels and health workers. In 2009, the country had 22 Institutes of public health, 23 general hospitals, 14 clinics, 40 special hospitals, 49 health centers, 176 pharmacies, 348 polyclinics, 154 care organisations, 13 Institutions of occupational medicine, 9 other health institutions and 207 health companies.

The country has about 79 hospitals and 23,967 hospital beds. There is a total of 11,847 doctors, 3,259 dentists and 2,673 pharmacists. The compulsory healthcare insurance expenditure was HRK 17,869.85 million in 2009.

(Source: dzs.hr)

[Top] Hard Infrastructure

Public transport in the country includes roads and railways.

Roadways

As of 2009, the total length of roads in the country was 29,343 kilometres. Of the total road network, 2,056 kilometres are E-roads.

(Source: dzs.hr)

Railways

The total length of railway lines in the country in 2009 was 985 kilometres.

(Source: dzs.hr)

 

Ports

 

There are 33 ports in Croatia. Some are the largest ports are     

  • Port of Vukovar
  • Port of Split
  • Port of Rijeka
  • Port of Kraljevica

 Source: (world port source)

 Airports

 A few of the airports in the country are listed below:

 

Town

Airport name

Runway length

Brac

Brac Intl

4,300 ft

Dubrovnik

Cilipi

10,800 ft

Krk Island

Rijeka

8,200 ft

Otocac

Otocac

5,300 ft

Pula

Pula

9,600 ft

Split

Kastela

8,300 ft

Udbina

Udbina

9,000 ft

Zadar

Zemunik

8,200 ft

Zagreb

Pleso

10,600 ft

 (Source: Air charter world)

Telecommunications networks

The telecommunications sector is the most developed in the country. In 2009, there was an increase in mobile subscribers by 2.64% as compared to the previous year. 

The internet users in 2009 increased by 11.18% as compared to the previous year. The broadband subscribers also increased, 30.55% as compared to previous year. In 2010, 2.2 million people, i.e. 50% of the total population, used internet services.

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