History and general

When Croatia was still another component of the Danube monarchy, the economy was still to a large extent agriculturally coined/shaped. In the environment of the larger cities were however also modern industrial companies. In the kingdom developed later Yugoslavia was clearly more progressively developed the Croatian economy in the comparison with in the eastern regions.

After the Second World War a time of the industrialization followed. The socialist plan accordingly, in Croatia above all enterprises of the pharmaceutical industry, the foodstuffs industry and the consumer goods industry were created. The metal and heavy industry were predominantly advanced in Bosnia and Serbia.

At the sixties increasingly the tourism began itself to develop along the coast. An important part of the profits from the Croatian economy had to be exhausted to poorer regions of Yugoslavia.

At times of Yugoslavia Croatia and Slovenia were within of Yugoslavia the wealthiest partial republics. Nevertheless hundredthousands left humans Croatia around the economic misery and poverty to escape and as immigrant workers their luck in Western Europe or North America to look for in and the seventies sixties. By for socialist countries unusually the liberal freedom to travel "“exported"” Yugoslavia its unemployment and won a rich Devisenquelle.

Since the independence of Croatia a privatisation and a reorientation take place on the European market.

The privatisation began however at the same time, when the Croatian war of independence broke out. The economic consequences of this war are further noticeably, on the one hand by direct destruction of industrial companies and on the other hand through

• Loss of sales markets,
• being missing the tourists over several years,
• immense costs of the accommodation and supply hundred-rope one hundred of and refugee from Bosnia-Herzegovina.
• the high costs of the reconstruction

For the public expenditures: Between 1992 and 2000 lay the portion of the public expenditures for

• the health service with 14%
• the training system with 8%
• the military with 6%

General data

The gross domestic product amounted in the year 2005 to 6.972 euro per head. The foreign debt of Croatia amounted to in the year 2004 22,139 million euro. In July 2005 the foreign debts amounted to 24,139, 6 million euro. The gros domestic product growth of the yearly 2005 amounts to according to prognoses approx. 4%. The net incomes rose 2005 by 5,9 per cent (average net income in November 2005:4595 Kuna = approx. 629 "€). Unemployment is high with 18 per cent further, however constantly sinks.

The Croatian economy is in a difficult process of transformation of the former socialist restaurant form of the worker autonomy into the free-market economy.

The war 1991-1995 made this development more difficult additionally. The war damage within the range of the infrastructure had to be reorganized to a large extent from own Kraft under large financial expenditure. The costs of the reconstruction of destroyed private houses were likewise taken over up to the carcass by the Croatian state.

After sectors of the economy 59% of the restaurant achievement are allotted to services, 32% to the industry, and 9% to the agriculture. The most important industries are the service ranges, the processing trade, the shipbuilding and the tourism, which concern v. A. the and the numerous islands.

The production of wine has a high value in the Croatian export list. Due to the obligation of Croatia to permit the agriculture is the duty-free import of high-subsidized agricultural cheap imported goods from the European Union in the crisis.

The largest problem of Croatia is the foreign trade balance: The exports could 2005 around approximately ten per cent add, the imported goods rose however still more strongly, i.e. around 13 per cent. Thus the trade deficit continues to grow always. Economists are not too optimistic also for the more near future, because the majority of the imported goods are consumer goods - which are often not produced in the country.

Beside Mercator (Slovenian), save (Austrian), Lidl (German), DM drugstore market (Austrian), purchase country (German), Mercatone (Italian), Billa (GermanAustrian) and ever more foreign chains settle Metro (German) in Croatia. The largest native retail chain is Konzum (to the Agrokor group associated).

Also the building of ships makes an important contribution for Croatian restaurant achievement. The Croatian dockyards have to exhibit a tradition of many years, are admit for their good quality and enjoy high reputation in the whole world. European-wide seen the Croatian ship industry takes to the 2. Place and world-wide seen the 5. Place, which concerns the number of orders. The largest Croatian threw 3. maj is in Rijeka (among other things building of tankers). Other important shipyards are Viktor Lenac in Martin"šcica (with Rijeka), Uljanik in Pula, threw from Kraljevica, Brodosplit and Brodotrogir.

A very large problem represents the high indebtedness of the Croatian population, who amounts to 33.9% at present GROS DOMESTIC PRODUCT (see average in the new European Union states: 16%). Thus the Croatian population is nearly twice as highly indebted, like the population in the other one, new European Union states. In the last years the indebtedness grew continuously by approx. 21%. The budget deficit of approximately three per cent drove the indebtedness ratio 2005 up: The national indebtedness rose thereby over the mark of 50 per cent GROS DOMESTIC PRODUCT.

Austria is with distance largest foreign investor in Croatia. According to official data Austrian holds the majority with 390 Croatian enterprises. Unofficially from a twice as high number one proceeds.

See also: Areas of cultivation of wine in Croatia

Current changes

In the last years numerous special foreign trade zones became and/or in Croatia on the part of the cities and municipalities. Enterprise zones furnished, which are subsidized by the government and equally in and foreign enterprises and investors special location advantages (complete infrastructure) and tax exemptions to offer. The capacity is already exhausted partly in such zones, which a visible indication of the success of this strategy is. Also constantly new such industrial areas are added, in particular in close proximity to newly built motorway sections.

2005 were introduced a service for entrepreneurs on the part of the government that should facilitate establishments of an enterprise in Croatia clearly. Over Internet so far bureaucratic official routines can be settled and a treatment of the requests in as short a periods as possible are guaranteed (so-called One stop Shop, see also Hitro.hr). Bribery possibilities and corruption can be here practically excluded. The government expects in particular by such services to the setting in motion of the economic growth in motion to contribute to be able. In the next months these services are to be removed further.

To the more important priorities also the land register reform belongs. In the course of the yearly 2006 also the last plots in electronic form in the Internet should be present, which should likewise facilitate location selections and establishments of an enterprise.

Since 2006 it is possible in Croatia to accomplish the value added tax explanation by Internet (ePDV). Shortly also the income tax return should be made possible by Internet. The government quit the imminent possibility for the use of the national financial services in the context of the project e-Hrvatska also by mobile telephone and/or mobile payment possibilities on (see m-parking in various Croatian cities). The it expensive bookkeeping including the possibility for the overview of all resulting tax liabilities should be introduced also shortly.

To the bureaucracy dismantling also the judicial reform belongs. Thus become starting from 2006 seizing Exekutionen) also of public notaries settles, in order to thus relieve the individual courts. (So far enterprises could pursue insolvent customers only with difficulty, were there the courts with seizing requests over-accumulated.)

In global the Entrepreneurship monitor (IN ACCORDANCE WITH) took Croatia in the year 2005 to the 19. Place under 35 states of this world and made thus eien large jump forward (2002: 32. Place under 37 states). In ACCORDANCE WITH is an international project, which is accomplished since 1999 by London Businesses School (Great Britain) and the Babson college (the USA). In the report the business activity is examined and analyzed compared with selected countries. In ACCORDANCE WITH became meanwhile the most important instrument of the international comparison of the differences reference of the business activity of individual countries. Factors are determined, on which business activities and politico-economic measures depend for the improvement of the business capacity of a state.

Articles in category "Economics of Croatia"

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