HRV Croatia profile

Croatia operates as a parliamentary republic with a multi party system and coalition governance. The political landscape is influenced by EU membership, which shapes policy alignment and reform pressures. Public administration faces challenges in efficiency, reform pace, and bureaucratic complexity, especially at local level. The judiciary’s independence and the rule of law are central concerns, with demands for timely decisions, transparency, and insulation from political influence. Media pluralism exists but can be affected by ownership structures and political interference, leading to periods of self censorship. Civil society is active, yet policy consultation and participatory governance can be uneven. Regional disparities and clientelist tendencies at times complicate uniform service delivery, while decentralization efforts aim to empower local authorities, requiring capacity building and clear fiscal rules. Anti corruption measures are in place, but procurement processes and regulatory capture risks persist in certain sectors. Management of EU funds remains a key governance test, demanding robust oversight and coherent reform implementation.

Colonial history No
Former colonizer N/A
Government type Parliamentary republic
Legal system Civil law
Political stability Moderately stable

The economy relies heavily on services, with tourism serving as a major activity and contributing to growth and employment, alongside industry and agriculture. The business environment benefits from regional integration and access to European markets and funds, but structural bottlenecks include dependence on external demand and cyclical patterns in tourism. The regulatory climate can hinder private investment due to administrative complexity and uneven enforcement. The labor market shows skills gaps and ongoing emigration, which constrain productivity and innovation. Innovation and digital economy development are advancing unevenly, with stronger activity in urban centers and weaker performance in rural areas. Foreign investment exists but diversification remains a challenge as strategic sectors retain significant state influence. Energy transition and environmental constraints shape industrial policy, requiring continued improvements in infrastructure efficiency and logistics. Public finances present longevity challenges, and reforms focus on fiscal governance, sustainability, and resilience to shocks.

Currency name Croatian Kuna (HRK)
Economic system Mixed economy
Informal economy presence Moderate
Key industries Tourism, shipbuilding, food processing, pharmaceuticals
Trade orientation Export-oriented

Croatia features a lengthy Adriatic coastline, diverse topography, and many islands, creating rich biodiversity and a favorable climate for tourism while complicating logistics and regional planning. Environmental management demands coordinated policy across coastal zones, islands, and mainland to address development pressure, water quality, and waste handling. Climate change implications include more extreme weather and sea level considerations for ports, beaches, and ecosystems, calling for adaptive planning. Protected areas and national parks preserve natural heritage but require steady funding and governance to balance conservation with local needs. Agricultural and fishery practices must align with sustainable use to support livelihoods while protecting ecosystems. Resource management, including energy and water, must navigate seasonal demand and cross border dynamics. Overall policy aims to safeguard ecosystems, reduce pollution, and promote resilient, low carbon development.

Bordering countries Slovenia, Hungary, Serbia, Bosnia and Herzegovina, Montenegro
Climate type Mediterranean
Continent Europe
Environmental Issues Pollution, deforestation, coastal erosion
Landlocked No
Natural Hazards Earthquakes, floods, landslides
Natural resources Petroleum, natural gas, coal, timber, iron ore, bauxite
Terrain type Coastal and mountainous

Demographic trends point to aging and ongoing outward migration, affecting workforce dynamics, pension sustainability, and regional vitality. Social policy centers on ensuring minority rights and integration, educational quality, and accessible health care, with ongoing attention to regional disparities in service provision. Education outcomes vary by region, and health system access remains uneven, particularly in rural areas. Inequality and social exclusion raise concerns about living standards and social mobility, while gender equality and domestic violence prevention require sustained commitment. Civil society is active and culturally vibrant, contributing to public discourse and policy monitoring, yet youth engagement and opportunities for meaningful participation vary. Cultural diversity and regional identities enrich social life, but integration challenges persist within some communities.

Cultural heritage Rich historical sites, traditional festivals, diverse folklore
Driving side Right
Education system type Public and private schools, compulsory education
Ethnic composition Croats, Serbs, Bosniaks, Italians, Hungarians
Family structure Nuclear families predominately, extended families present
Healthcare model Universal healthcare system
Major religions Roman Catholicism, Eastern Orthodoxy, Islam
Official languages Croatian

Transport networks connect the mainland with coastal and island areas through roads, ports, and airports, but capacity constraints and maintenance needs persist in less connected zones. Modernization efforts target rail and port efficiency, border management, and logistics, with emphasis on reducing bottlenecks and improving reliability. Energy infrastructure prioritizes diversification and renewables, while grid integration and storage capacity require investment and planning. Digital infrastructure expands with improving broadband and e-government services, though rural digital inclusion remains uneven. The innovation ecosystem includes universities and research institutes, yet commercial translation and private sector participation in R&D lag in some regions. The startup scene exists with regional hubs, but access to finance and regulatory hurdles can slow scaleups. Public–private partnerships and EU funded initiatives drive infrastructure upgrades and technology adoption, highlighting the need for coherent governance and long term maintenance.

Internet censorship level Low
Tech innovation level Developing
Transport system type Road, rail, maritime, and air transport

Development indicators

Indicator Year Value Rank 5Y Rank Change
Military expenditure (current US$) 2023 1,439,060,332 64 -10
Political Stability and Absence of Violence/Terrorism 2023 0.598 59 +8
Regulatory Quality 2023 0.644 51 -7
Rule of Law 2023 0.361 78 +5
Unemployment, total (% of total labor force) 2023 6.09 34 -6
Birth rate, crude (per 1,000 people) 2023 8.3 179 -5
Death rate, crude (per 1,000 people) 2023 13.3 9 -2
Exports of goods and services (% of GDP) 2024 49.8 39 -13
GDP per capita (current US$) 2024 23,931 50 -25
GDP per capita, PPP (current international US$) 2024 48,575 46 -12
High-technology exports (current US$) 2023 1,738,860,511 50 0
Imports of goods and services (% of GDP) 2024 52.9 52 -13
Inflation, consumer prices (annual %) 2024 2.97 80 -56
Life expectancy at birth, total (years) 2023 78.5 60 0
Mortality rate, under-5 (per 1,000 live births) 2023 4.6 136 -5
Net migration 2024 -5,186 139 -18
Patent applications, residents 2021 77 68 +9
Population, total 2024 3,866,300 129 0
Poverty headcount ratio at national poverty lines (% of population) 2021 18 34 +4
Prevalence of undernourishment (% of population) 2022 2.5 91 +1
Renewable energy consumption (% of total final energy consumption) 2021 34.1 66 -1
Research and development expenditure (% of GDP) 2022 1.4 24 -16
Foreign direct investment, net inflows (% of GDP) 2024 5.04 21 -10
Current account balance (% of GDP) 2024 -1.13 63 +17
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 1.48 158 0
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 6.48 58 -12
Current health expenditure (% of GDP) 2022 7.22 83 0
Domestic general government health expenditure per capita, PPP (current international US$) 2022 2,580 33 -7
Physicians (per 1,000 people) 2021 3.61 24 +22
Suicide mortality rate (per 100,000 population) 2021 15.7 23 0
Individuals using the Internet (% of population) 2023 83.2 60 +10
Control of Corruption 2023 0.182 73 -6
Government Effectiveness 2023 0.713 47 -6
Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high) 2022 3 16

Compare Croatia to other countries

Demography and Health

Croatia in 2024 has a population of about 3.87 million people, reflecting a relatively small, aging society within Europe. The birth rate stands at 8.3 per 1,000 people (2023), while the crude death rate is 13.3 per 1,000 (2023), indicating a natural decrease that is unlikely to be offset quickly by births alone. Life expectancy at birth is 78.5 years (2023), a solid longevity level, yet mortality among children under five remains a concern at 4.6 per 1,000 live births (2023). The country experiences a negative net migration of 5,186 people (2024), suggesting ongoing outward movement that can compound aging and influence the future labor force and domestic demand. Health system indicators show current health expenditure at 7.22% of GDP (2022) with per-capita health expenditure at 2,580 international dollars (2022) in purchasing power parity terms, pointing to substantial public and private investment in care. Croatia has 3.61 physicians per 1,000 people (2021), a reasonable density by European standards, but suicide mortality remains a notable public health concern at 15.7 per 100,000 people (2021). Digital connectivity is strong, with 83.2% of the population using the Internet (2023), while poverty is still present for 18% (2021) and undernourishment affects 2.5% of the population (2022). These demographic and health indicators suggest a nation that enjoys relatively good health outcomes and social infrastructure but faces challenges from aging, emigration, and persistent inequality that could shape future health and social policy priorities.

Economy

Croatia displays a mid-to-upper income profile with a nominal GDP per capita of 23,931 US dollars in 2024 and a GDP per capita on a purchasing power parity basis of 48,575 international dollars in 2024, reflecting a fairly generous standard of living relative to some neighboring economies. The inflation rate is 2.97% in 2024, signaling price stability within a normal range. The economy shows signs of openness and diversification: exports of goods and services account for 49.8% of GDP (2024) while imports of goods and services amount to 52.0% of GDP (2024), indicating a moderately open economy with meaningful external links. Unemployment stood at 6.09% in 2023, suggesting a reasonably healthy labor market by regional standards. Croatia invests in research and development at 1.4% of GDP (2022), with high-tech exports valued at about 1.74 billion US dollars (2023), underscoring a growing, albeit still modest, tech- and knowledge-based component to the economy. Domestic policy and business environment benefit from foreign direct investment net inflows of 5.04% of GDP (2024), signaling continued investor interest. The current account balance is marginally negative at -1.13% of GDP (2024), implying some sensitivity to external shocks but generally contained external financing needs. The social fabric includes a poverty rate at 18% (2021) and a prevalence of undernourishment of 2.5% (2022), while energy dynamics include renewable energy contributing 34.1% of total final energy consumption (2021), suggesting a shift toward cleaner energy sources. Overall, Croatia’s economy blends a solid standard of living with ongoing reform needs in governance, innovation, and external competitiveness to sustain higher productivity and employment growth.

Trade and Investment

Trade and investment dynamics in Croatia reflect a balance between openness and vulnerability to external conditions. Exports of goods and services represent 49.8% of GDP (2024), with imports at 52.0% of GDP (2024), indicating a highly trade-oriented economy that is still integrated into regional and global supply chains. Net inflows of foreign direct investment equal 5.04% of GDP (2024), pointing to sustained external investment activity, though the absolute scale remains modest by global standards. The country’s high-technology exports stand at about 1.74 billion US dollars (2023), highlighting a niche but growing tech-oriented export segment and opportunities for upgrading industrial sophistication. The logistics environment is relatively favorable, with the Logistics Performance index rating Quality of trade and transport-related infrastructure at 3.0 (2022) on a 1–5 scale and a rank around 16, indicating credible logistics capability that supports trade. Patents by residents are 77 (2021), signaling continuing but modest inventive activity relative to population size. Croatia also faces a mild current account deficit (-1.13% of GDP in 2024) while maintaining a diversified import base, which suggests resilience but also sensitivity to global price movements and demand cycles. Taken together, Croatia displays a reasonably open, investment-attractive economy with room to deepen productivity through innovation, digitalization, and further integration into European and global value chains.

Governance and Institutions

Governance indicators present a mixed picture. Political stability and absence of violence/terrorism score 0.598 in 2023, signifying a stable but not flawless security and political environment. Regulatory quality is moderate at 0.644 (2023), suggesting some effectiveness in policy formulation and implementation. The rule of law, at 0.361 (2023), is comparatively weaker, indicating challenges in legal enforcement and judicial integrity. Control of corruption stands at 0.182 (2023), pointing to significant room for improvement in governance transparency and anticorruption efforts. Government effectiveness is relatively strong at 0.713 (2023), reflecting capable public administration, while other dimensions of governance and institutions reveal gaps that could affect investment climate, long-term policy stability, and socio-economic reform outcomes. The overall governance profile implies that Croatia has the capacity to implement reforms and manage policy, but success will depend on strengthening the rule of law, anticorruption measures, and institutional coherence to sustain growth, confidence, and social cohesion.

Infrastructure and Technology

Croatia’s infrastructure and technology landscape shows a reasonably solid base with signs of modernization and digital adoption. Internet usage is high, with 83.2% of the population online in 2023, reflecting strong digital connectivity that supports e-services, business efficiency, and innovation. The Logistics Performance index stands at 3.0 (2022), indicating quality trade and transport infrastructure that supports domestic commerce and international shipments, ranking Croatia well on a relative scale. The country invests in research and development at 1.4% of GDP (2022), with high-technology exports worth about 1.74 billion US dollars (2023), illustrating a growing but still incremental high-tech export capability. Human capital supports this trajectory through 3.61 physicians per 1,000 people (2021) and a health system that, while largely adequate, operates within the broader infrastructure and fiscal constraints. Renewable energy already accounts for 34.1% of total final energy consumption (2021), signaling progress toward a cleaner energy mix and greater energy security. The presence of 77 resident patent applications (2021) reinforces the picture of ongoing innovation activity, even as Croatia continues to expand digital infrastructure, improve transport networks, and upgrade industrial capacity for higher value-added production.

Environment and Sustainability

Environmental performance and sustainability in Croatia reflect a policy mix of decarbonization efforts and resource pressures. Total greenhouse gas emissions per capita excluding LULUCF are 6.48 t CO2e (2023), placing Croatia in a mid-range position within Europe in terms of per-person emissions. Renewable energy contributes a substantial share (34.1% of total final energy consumption in 2021), indicating a meaningful move toward cleaner energy sources, though continued improvements in efficiency and technology are needed to further reduce emissions. Water resources face some stress, with freshwater withdrawal at 1.48 times the available freshwater resources (2021), signaling areas where water management and efficiency policies could be strengthened to reduce vulnerability during droughts or high-demand periods. The prevalence of undernourishment is low at 2.5% (2022), and the population experiences a notable but not extreme level of poverty at 18% (2021), suggesting that social and environmental policies should continue to focus on inclusive growth and resilience. Overall, Croatia shows meaningful progress in renewable energy and sustainability-minded policies, while remaining attentive to resource management, climate resilience, and reducing emissions intensity as it pursues higher living standards and environmental stewardship.