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Croatia
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Economy

Economy - overview: Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output perhaps one-third above the Yugoslav average. Croatia faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges, factories, power lines, buildings, and houses; the large refugee and displaced population, both Croatian and Bosnian; and the disruption of economic ties. Western aid and investment, especially in the tourist and oil industries, would help restore the economy. The government has been successful in some reform efforts - partially macroeconomic stabilization policies - and it has normalized relations with its creditors. Yet it still is struggling with privatization of large state enterprises and with bank reform. The recession that began at the end of 1998 continued through most of 1999, and GDP growth for the year was flat. Inflation remained in check and the kuna was stable. The death of President TUDJMAN in December 1999, and the defeat of his ruling Coatian Democratic Union or HDZ party in parliamentary and presidential elections in January 2000 has ushered in a new government committed to economic reform but faced with the challenge of halting the economic decline.

GDP: purchasing power parity - $23.9 billion (1999 est.)

GDP - real growth rate: 0% (1999 est.)

GDP - per capita: purchasing power parity - $5,100 (1999 est.)

GDP - composition by sector:
agriculture: 10%
industry: 24%
services: 66% (1996 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 4.4% (1999)

Labor force: 1.65 million (1999)

Labor force - by occupation: agriculture NA%, industry NA%, services NA%

Unemployment rate: 20% (1999 est.)

Budget:
revenues: $6 billion
expenditures: $4.7 billion, including capital expenditures of $NA (1998)

Industries: chemicals and plastics, machine tools, fabricated metal, electronics, pig iron and rolled steel products, aluminum, paper, wood products, construction materials, textiles, shipbuilding, petroleum and petroleum refining, food and beverages; tourism

Industrial production growth rate: -2% (1999 est.)

Electricity - production: 9.515 billion kWh (1998)

Electricity - production by source:
fossil fuel: 42.72%
hydro: 57.28%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 12.949 billion kWh (1998)

Electricity - exports: 900 million kWh (1998)

Electricity - imports: 5 billion kWh (1998)

Agriculture - products: wheat, corn, sugar beets, sunflower seed, alfalfa, clover, olives, citrus, grapes, vegetables; livestock, dairy products

Exports: $4.5 billion (f.o.b., 1998)

Exports - commodities: textiles, chemicals, foodstuffs, fuels

Exports - partners: Italy 21%, Germany 18%, Bosnia and Herzegovina 15%, Slovenia 12% (1997)

Imports: $8.4 billion (c.i.f., 1998)

Imports - commodities: machinery, transport and electrical equipment, chemicals, fuels and lubricants, foodstuffs

Imports - partners: Germany 20%, Italy 19%, Slovenia 8%, Austria 8% (1997)

Debt - external: $8.1 billion (October 1999)

Economic aid - recipient: $NA

Currency: 1 Croatian kuna (HRK) = 100 lipas

Exchange rates: Croatian kuna per US$1 - 7.591 (January 2000), 7.112 (1999), 6.362 (1998), 6.157 (1997), 5.434 (1996), 5.230 (1995)

Fiscal year: calendar year



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