Your partner for success

Croatia
Chamber of Commerce Country Factsheet Last update: 20.06.2018

Your advisors at the Chamber of Commerce

  • Edith Stein
    +352423939482
  • Anne-Catherine Fohl
    +352423939372
Contact us: europe@cc.lu

Key Indicators

Area
56,594 km2
Population
4,292,095 (July 2017 est.)
Government type
presidential/parliamentary democracy
Languages
Croatian (official) 95.6%, Serbian 1.2%, other 3% (including Hungarian, Czech, Slovak, and Albanian), unspecified 0.2% (2011 est.)
GDP
$100.2 billion (2017 est.)
Growth rate
2.9% (2017 est.)
HDI
46
Capital
Zagreb

 

Introduction

The lands that today comprise Croatia were part of the Austro-Hungarian Empire until the close of World War I. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became a federal independent communist state under the strong hand of Marshal Josip Broz, aka TITO. Although Croatia declared its independence from Yugoslavia in 1991, it took four years of sporadic, but often bitter, fighting before occupying Serb armies were mostly cleared from Croatian lands, along with a majority of Croatia's ethnic Serb population. Under UN supervision, the last Serb-held enclave in eastern Slavonia was returned to Croatia in 1998. The country joined NATO in April 2009 and the EU in July 2013.

Source: The CIA World Factbook - Croatia

 

Macroeconomic indicators

Though still one of the wealthiest of the former Yugoslav republics, Croatia’s economy suffered badly during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between 2000 and 2007, however, Croatia's economic fortunes began to improve with moderate but steady GDP growth between 4% and 6%, led by a rebound in tourism and credit-driven consumer spending. Inflation over the same period remained tame and the currency, the kuna, stable.

Croatia experienced an abrupt slowdown in the economy in 2008 and is slowly recovering; economic growth was stagnant or negative in each year between 2009 and 2014, but has picked up since 2015. Difficult problems still remain including a stubbornly high unemployment rate, uneven regional development, and a challenging investment climate. Its stubbornly high unemployment rate is slowly coming down. In 2016 Croatia demonstrated a commitment to improving the business climate, simplifying its tax code to stimulate growth from domestic consumption and foreign investment. Even before 2016, Croatia has worked to become a regional energy player and plans to import liquefied natural gas through a prospective import terminal and re-export it to European consumers.

On 1 July 2013, Croatia joined the EU, following a decade-long application process. Croatia will be a member of the European Exchange Rate Mechanism, with its currency effectively pegged to the euro, until it meets the criteria for joining the Economic and Monetary Union and adopts the euro as its currency. EU accession has increased pressure on the government to reduce Croatia’s relatively high public debt and as a result Zagreb has cut spending and has raised additional revenues through more stringent tax collection and by raising the value-added tax. The government has also sought to accelerate privatization of non-strategic assets, with mixed success. Croatia’s economic recovery is still somewhat fragile, though, as one of the country’s largest companies almost collapsed in 2017.

Source: The CIA World Factbook

IMF Statistics:

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
-0.3601.6451.9002.1002.200
Gross domestic product, current prices
U.S. dollars (Billions)
57.17148.85049.85551.47353.525
Gross domestic product per capita, current prices
U.S. dollars (Units)
13,490.01711,572.89411,858.47312,292.60712,833.913
Inflation, average consumer prices
Percent change
-0.207-0.465-0.9860.7711.701
Volume of imports of goods and services
Percent change
4.2966.2006.5006.8007.000
Volume of exports of goods and services
Percent change
7.3168.0007.5007.0006.500
Unemployment rate
Percent of total labor force
17.10016.90016.39315.90115.424
Current account balance
U.S. dollars (Billions)
0.4892.5511.5141.1180.783
Current account balance
Percent of GDP
0.8555.2223.0372.1721.463
Colored cells are estimates

Source: IMF Statistics - Croatia

 

Luxembourg and the country

Existing conventions and agreements

Non double taxation agreement 

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 20.06.2014 (Memorial 2015, A No.232, p.5050)
  • Effective as of 01.01.2017 (Memorial 2015, A No.232, p.5050)

 

Air Services agreement

  • Agreement from 24.7.1996  (Memorial 1999, A, p. 1538)
  • Effective Jas of 24.06.1999 (Memorial 1999, A, p. 280)

Source: Administration des Contributions Directes

 

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact point in Croatia

Embassy of the Grand Duchy of Luxembourg in Rome:

Ambassador: Mr Paul DÜHR

Via Santa Croce in Gerusalemme, 90
00185 Rome
Italy

Tél.: (+39-06) 772 01 177
Fax: (+39-06) 772 01 055
E-mail: zagreb.amb(at)mae.etat.lu
Source: croatia.mae.lu  

Economic and Commercial Attaché (AWEX): 

Mr Antonio GARCIA

Pantovcak, 125 d
HR-10000 ZAGREB
Tel: +385-1-457.74.44
Fax: +385 1457 74 45
E-mail: office@beltrade-croatia.com / zagreb@hub.brussels

Source: AWEX

Country risk as defined by Office du Ducroire for Croatia

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Croatia

Other Useful Links: