The Croatian economy registers optimistic results thanks to its dynamic domestic demand stimulated by a recent access to credit and thanks to tourism's fast development. GDP growth rate was 4.3% in 2003, 3.7% in 2004 and is estimated at 3.4% in 2005. The IMF forecasts a 3.9% growth in 2005. Inflation in under control. The Croatian authorities have implemented austerity budget, privatization and international opening up policies (Croatia has joined the WTO in 2000 and has signed an association agreement with the European Union in 2001). Croatia's two major problems are its high unemployment rate (18.4% of the active population) and its heavy public and external deficit.

      The agriculture sector constitutes 10% of its GDP. Croatia produces wheat, corn, sugar beet, fruits, wine and olive oil. Wood industry is one of the economy's basis. There are limited mineral resources. Industry concentrates in highly competitive activities such as textile, wood, iron and steel, aluminum and food-processing. Tourism is in full bloom and 9.4 millions tourists visited Croatia in 2004.

      Its top export partners are Italy, Germany and Bosnia. Croatia's top import partners are Italy, Germany and Russia. Croatia mainly imports hydrocarbons, machinery, vehicles and electronic and electrical material. The most promising sectors are building, tourism, mass distribution and telecommunications.