World Country Guide

Business Profile

Economy
After Slovenia, Croatia was the most developed republic of the former Yugoslavia. With substantial support and investment from abroad, the Croatian economy recovered well after the break up of Yugoslavia and several years of civil war. Industry is the most important sector in the economy, producing textiles, chemicals, processed foods, finished metal goods and construction materials. Agriculture, which produces maize, wheat and sugar beet, is important for domestic purposes but has never contributed significantly to the export economy. Mineral deposits of exploitable size include oil, coal and natural gas. Croatia also has an important tourism industry, based on the Dalmatian coast: after being all but wiped out by the civil war, it has recovered and prospered; it now accounts for about 15 per cent of GDP and has been largely responsible for Croatia’s recent economic progress. Annual GDP growth is around 4 per cent. After independence, the government introduced a programme of privatisation and other market reforms inline with those adopted throughout eastern Europe. Croatia joined the IMF in January 1993, the European Bank for Reconstruction and Development and the World Trade Organisation. In May 1994, the Government introduced a new currency, the Kuna: low inflation has allowed the government to keep its value reasonably stable. The country’s most important trading partners are Germany, Italy, Austria, Slovenia and Bosnia & Herzegovina.

Business
In many ways one of the more conservative areas of the former Yugoslav Federation, Croatia tends towards formal business protocol, but this image of Western-style efficiency is often belied by the fact that things go very slowly on account of the cumbersome bureaucracy. Communication, however, is no problem as English and German are widely used as second languages. Business cards including professional or academic titles should be exchanged just after formal introductions. There is also a large number of local agents, advisers, consultants and, to a lesser extent, lawyers, willing to act for foreign companies, but none should be engaged before being thoroughly checked in advance. Croatia has created a more liberal framework for foreign investments so that foreign investors are guaranteed special rights and incentives for investing in Croatia. Office hours: Mon-Fri 0800-1600.

Commercial Information
The following organisation can offer advice: Croatian Chamber of Economy, Trg Rooseveltov 2, 10000 Zagreb (tel: (1) 456 1555; fax: (1) 482 8380; e-mail: hgk@hgk.hr; website: www.hgk.hr).

Conferences/Conventions
The Croatian National Tourist Board can offer advice through their Convention Bureau (see Contact Addresses section), which also has a Zagreb Convention Bureau located at Koptol 4, 10000 Zagreb (tel: (1) 489 8555; e-mail: info@zagreb-convention.hr; website: www.zagreb-convention.hr).