As a relatively new country in the European Union, Croatia has made great strides to develop its manufacturing economy. Now it is a leader in Eastern Europe and especially among the former states of Yugoslavia. Croatia has proven that with innovation and perseverance it could become a stable and productive member of the European Union.

Growth in Manufacturing

Manufacturing is not the backbone of the country’s economy. 70% of Croatian GDP comes from the tertiary sector, or services, which is about $94.2 billion USD annually in purchasing power. Despite being a smaller section of the economy, manufacturing nonetheless grows in importance and power each year.  In 2015, manufacturing saw a 2.7% revenue increase. In 2016, it realized a 3.5% increase. Today, manufacturing makes up about 26% of the GDP.  In the last two years, Croatian exports broke 10 billion euros. 94% of these come from the manufacturing sector, placing Croatia on the manufacturing radar for the first time.

Twenty percent of all Croatian manufacturing comes from the food and beverage industry. These products are distributed throughout Croatia, other former Yugoslavia countries, and Eastern Europe.

In line with the rest of Europe, automotive also holds a strong position in Croatian manufacturing and now accounts for 11.2% of all Croatian manufacturing. Unlike its European counterparts, Croatia produces mostly parts and software rather than vehicles. Automotive manufacturing accounts for about $600 million in profits annually.

It is not easy for Croatia to find a strong economic position in Europe because of its highly competitive neighbors. However, Croatia’s manufacturing has grown steadily in recent years and so has their economy. Despite tumultuous moments in its history, Croatia is one of the most prosperous countries of the former Yugoslavia.

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