Republic of Croatia Ministry of Economy

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Republic of CroatiaMinistry of Economy

• November 2003

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Geographic Overview
ZAGREB Pop 868,000
Osijek Pop 130,000
Rijeka Pop 168,000
Zadar Pop 80,000
Split Pop 200,000
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Ultimate goals

• - Competitive market economy
• - Macroeconomic Financial stability
• - EU membership

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Main objectives

• Reduction of unemployment
• Increase of exports
• Introduction of new technologies and business
  concepts
• Further development of the local financial market

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Croatian economy is growing
GDP, USD billion 22.4 GDP per capita,
USD 5,056 GDP growth rate (USD),
5.2 Industrial output growth rate,
5.4 Inflation rate, 2.3 Retail trade,
indices nominally 112.4 really 110.3 Outstand
ing external debt, USD billion 15.2 CNB
international reserves, USD billion 5.8 Commercial
banks foreign reserves, USD billion 2.6 FDI
1993 2ndQ 2003, USD billion 8.4
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SWOT

• Strengths
• skilled workforce
• relatively low labour costs
• close to the West European markets
• existing infrastructure

• Weaknesses
• underdeveloped technology, partially or
  completely
• insufficient utilisation of capacities
• low productivity
• slow restructuring

• Threats
• possible disruptions in the world market and
  competition from the Far East
• insufficient capacity utilisation
• brain drain of skilled personnel

• Opportunities
• introducing new technologies
• production increase
• introducing new products
• reduction of production costs
• export increase

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FDI in Croatia
Source National Bank of Croatia
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FDI per capita 93-02
Source National Bank of Croatia
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Profit repatriation for 2002
Source National Bank of Croatia
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FDI by origin
Country Share in total foreign
investments Austria 28.59 Germany
22.75 USA 14.69 Luxembourg
6.53 Italy 4.36 The
Netherlands 3.59
Source National Bank of Croatia
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FDI by sectors (1993-2002)
Source National Bank of Croatia
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Investment Promotion Law

• Minimum investment required - 450,000 USD (4 mil
  HRK)
• Incentives
• financial support for job creation
• assistance in vocational training and re-training
  
• real estate usage
• no customs duty for invested equipment (tariff
  headings 84-90)
• Tax incentives

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The institutional building

• public reforms
• improvements in juridical sector
• computerised cadastre and land registry
• improving financial markets
• incentives for RD
• improved bankruptcy law
• free zones (14, 4 in main ports)
• CARDS projects
• Investment promotion agency (TIPA)
• WB, FIAS, EU/EC

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Infrastructure

• construction of new highways and roads
• reconstruction of railroads
• waste and waste water treatment
• optical fibre cables
• reform of education system
• introducing of new business concepts
• SME development
• quality standards
• qualified local consultants
• improving the competitiveness level
• EBRD, EIB, WB

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Contact us .....

• Ministry of Economy
• Investment Promotion Department
• Ulica grada Vukovara 78
• Krunoslav Placko, Assistant minister
• E-mail krunoslav.placko_at_mingo.hr
• Phone [phone]
• Fax [phone]