Croatian Chamber of Economy ECONOMIC ENVIRONMENT IN C R O A T I A Croatian Business Forum Tokyo March 5, 2008
GEOGRAPHIC PROFILE Area: 56,538 km2 Population: 4.4 mil Coastline: 1,778km Islands: 1,185 Capital: Zagreb Distance to Vienna: 274km Distance to Budapest: 302km Currency: kuna (HRK) Exchange rate HRK/USD: 5.365 (av( av. 2007) HRK/JPY: 4.585
ECONOMIC PROFILE 2006 MACROECONOMIC STABILITY GDP: 42.9 bn USD GDP per capita: 9,664 USD GDP growth: 4.8% Industrial output growth: 4.5% (2006), 5.6% (2007) Inflation rate: 3.2% (2006), 2.9% (2007) Average net salary: 788 USD Stable currency Long term credit rating: BBB+ Rating &Investment Information BBB Standard&Poors Baa3 Moody s
EXTERNAL RELATIONS Since 2000 member of the World Trade Organisation 38 Free Trade Agreements - CEFTA Member Active role in the stabilization of the region Accession negotiations with the EU Stabilization and Association Agreement (SAA) with EU - 2001 opening of Croatia's accession negotiations with the EU 2005 NATO membership invitation expected - April 2008
PRIORITIES OF CROATIAN Membership of the EU and NATO GOVERNMENT Harmonisation of Croatia s legislation to acquis communitaire GDP growth - 6% Increase in exports and FDI s Reconstruction of Croatian Railways, energy power sector Completion of privatisation: CPF portfolio Decrease in gross external debt - 60% of GDP Increase in competitiveness Reform of judiciary Reform of health system
GDP GROWTH RATE 2001-2006 BY COUNTRIES % 7 6 5 4 3 6,1 5,6 5,2 4,8 4,3 4,1 3,8 2 1,9 1 0 Romania Bulgaria Slovakia Croatia Hungary Czech Republic Slovenia EU25 Source: Eurostat
INFLATION IN 2006,, ANNUAL AVERAGE BY COUNTRIES Bulgaria Romania Latvia Estonia Slovakia Hungary Lithuania CROATIA Slovenia EU-25 Czech Republic 4,4 4,3 4,0 3,8 3,2 2,5 2,2 2,1 6,6 6,6 7,3 Poland 1,3 8 7 6 5 4 3 % 2 1 0 Source: WIIW, Eurostat
GDP STRUCTURE 2006 Industry 20% Agriculture 6% Tourism 20% Other 54% TOURISM OTHER AGRICULTURE INDUSTRY
INDICES OF INDUSTRIAL PRODUCTION 2000=100 indices 135 130 125 120 115 110 105 100 2001. 2002. 2003. 2004. 2005. 2006. Source: Croatian Bureau of Statistics
INDUSTRY 20% of GDP (2006) employs 280,000 persons (25% of total employment) 10,000 active companies main industrial branches: - food and beverages production - refined petroleum products - chemicals and pharmaceutical products - fabricated metal products - machinery - plastic and rubber products - shipbuilding (strongly export-oriented) - wood industry and furniture 12 Croatian Chamber of Economy
AGRICULTURE AND FOOD INDUSTRY 6% of GDP (2006) 6.5 % of total employment 84 % of cultivated land - privately owned many well-known Croatian export products: fish (canned, fresh, frozen), chocolate products and biscuits, olive oil, meat (prosciutto smoked ham) wide range of products (fish, cattle, cereals, wine, olives, sugar beet etc.) 13 Croatian Chamber of Economy
TOURISM revenues: over 7 bn USD (2006) 20 % of GDP (2006) 11.2 m tourists (2007) 86,404 Japanese tourists - 131,129 overnight stays (2007) 1,185 islands 50 marinas 8 national parks world cultural and natural heritage sites protected by UNESCO
GROWTH RATES OF TOURIST ARRIVALS AND NIGHTS SPENT IN CROATIA, 2000=100 150 140 130 % 120 110 100 2001. 2002. 2003 2004. 2005. 2006. ARRIVALS NIGHTS Source: Croatian Bureau of Statistics
BANKING SECTOR stable and developed sector, high diversification and good quality of financial products and services 33 banks, 5 building societies state owned banks 4% private domestic banks 5% foreign-owned banks 91% Croatian National Bank central financial institution HBOR (CBRD) Croatian Bank for Reconstruction and Development state-owned investment bank
INFRASTRUCTURE Roads and motorways: 28,344km motorways: 1,069km under construction: Split - Ploče 96km Beli Manastir - Osijek - BiH border 98km (Vc) Railways: 2,726 km Sea Ports: 6 of national importance 2 for cargo transshipment (Rijeka, Ploče), 4 for passenger transport (Zadar, Šibenik, Split, Dubrovnik) Airports: 8 international + 2 for general aviation Pipelines: gas 2,563km oil: 601km
COMMODITY EXCHANGE 2007 Total 38,189 m USD Export 12,360 m USD Import 25,829 m USD m USD percentage EU countries 24,172 63.3% CEFTA 4,060 10.6% Other countries 9,957 26.1% Source: Croatian Bureau of Statistics 19 Croatian Chamber of Economy
CROATIA S S MAIN TRADING PARTNERS 2007 Italy Germany 17% 13% Bosnia & Herzegowina 7% Russia 7% Austria 6% Slovenia 7% China 4% 20 Croatian Chamber of Economy
THE MAIN EXPORT AND IMPORT EXPORT PRODUCTS 2006 1. Mineral fuels and oils 15 % 2. Ships, boats and yachts 11 % 3. Electrical machines, equipment and parts 9 % 4. Machinery, appliances and parts 7 % 5. Wood and articles of wood 4 % IMPORT 1. Mineral fuels and oils 16 % 2. Machinery, appliances and parts 12 % 3. Vehicles and their parts 9 % 4. Electrical machines, equipment and parts 8 % 5. Plastics and plastic products 4 %
COMMODITY EXCHANGE CROATIA - JAPAN (m USD) YEAR EXPORT IMPORT TOTAL BALANCE 2002 46 164 210-118 2003 74 245 319-171 2004 56 280 336-224 2005 40 273 313-233 2006 94 324 418-230 2007 69 417 486-348 Source: Croatian Bureau of Statistics
MOST TRADED COMMODITIES BETWEEN CROATIA AND JAPAN 2007 CROATIA S S EXPORT TO JAPAN % Fish, fresh or chilled 75% Fish, frozen 18% Wood sawn or chipped length 4% Tanned or dressed furskins 0.7% Yachts and other vessels for pleasure or sports 0.4% CROATIA S S IMPORT FROM JAPAN % Motor cars & vehicles 26% Printing machinery 10% Knitting machines, stitch-bonding machines 6 % Transmission apparatus for radio-broadcasting or television 4% Air-conditioning machines 4 % Source: Croatian Bureau of Statistics
VISITS BY JAPANESE TOURISTS 2003-2007 140000 120000 100000 80000 60000 40000 20000 Arrivals Overnight stays 0 2003 2004 2005 2006 2007 Source: Croatian Bureau of Statistics
CROATIA - JAPAN Croatian Exhibition (JETRO) - March 1998, Tokyo, Kobe Seminar on Japanese Trade and Investment in Croatia - February 2007, Zagreb Project Finance Conference in Croatia (JBIC) - April 2007, Zagreb Visits by Japanese companies Seminar on Investment Opportunities in Croatia - June 2007, Tokyo Potential cooperation: transport tourism industry agriculture
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International Relations Department Contact person: Ms. Dunja Konjevod Vice President phone: + 385 1 4828 382 fax: + 385 1 4828 379 Rooseveltov trg 2 10000 Zagreb, Croatia e-mail: eoi@hgk.hr www.hgk.hr CROATIAN CHAMBER OF ECONOMY