Croatia

Privatization and the drive toward a market economy had barely begun under the new Croatian Government when war broke out in 1991. As a result of the war, the economic infrastructure sustained massive damage, particularly the revenue-rich tourism industry.From 1989 to 1993, GDP fell 40.5%. With the end of the war in 1995, tourism and Croatia’s economy recovered moderately.However, corruption, cronyism, and a general lack of transparency stymied meaningful economic reform, as well as much-needed foreign investment. Croatia’s economy turned the corner in 2000 as tourism rebounded. The economy expanded in 2002, stimulated by a credit boom led by newly privatized and foreign-capitalized banks, some capital investment, most importantly road construction, further growth in tourism, and gains by small and medium-sized private enterprises.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

73.36

Capital

Zagreb

Area (sq. km.)

56,542

GDP Real

Growth (%)

4.8

Other Large Cities

Split, Rijeka, Osijek

Population (million)

4.49

PerCap GDP ($)

16,100

Primary Language

Croatian

Population

Growth %

-0.052

Prime Lending

Rate (%)

9.33

Urban

Population %

57

% Population

Under 15yrs

15.6

Inflation Rate%

6.3

Urban Growth %

0.4

Population below

poverty line (%)

11

Unemployment%

14.8

Literacy

(% of population)

98.1

Agricultural Workers

(% of population)

7

Foreign Direct

Investment($bn)

19.5

Education spending

as % of GDP

4.5

Industrial Workers

(% of population)

32

Debt-External

($bn)

53.3

CPI Score

(1-10)*

4.4

Service Workers

(% of population)

61

Exports ($bn)

12.36

Corporate Income Tax %

20

Labor Force (mil)

1.781

Imports ($bn)

25.84

Ease of Doing

Business Ranking **

106

CURRENCY EXCHANGE RATE

06/22/09 $1 = 5.2 HRK

 

Franchising Laws Overview

Disclosure laws:

  • None.

Relationship laws:

  • None.

Registration laws:

  • None.

Note: Croatian law merely defines what a “franchise” is.

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