Dynamic economy, strategic market

Far from the bleak outlook typical of countries where war is part of their recent history, this former member of the Yugoslav Federation faces a post-war period with vitality, characterized by a dynamic economy committed to a series of reforms that will allow for a healthy transition to a free market economy.

Croatia, a strategic location and gateway to Central Europe, has maintained its international presence by signing several free trade agreements, such as the Central European Free Trade Agreement (CEFTA), and by joining the European Free Trade Association (EFTA). As a result of these efforts to gain influence on the international stage, Croatia joined the World Trade Organization (WTO) in November 2002 and signed the Stabilisation and Association Agreement with the European Union. The Croatian government's objective is clear: to join the European Union in 2007.

With a democratic regime based on a four-party coalition dominated by Prime Minister Ivica Racan's socialist party, Croatia faces an economy dominated by the service sector (59% of GDP), industry (32% of GDP) and agriculture (9% of GDP).

Its overall situation, after the recession suffered in 1999, is marked by good macroeconomic conditions, with real GDP growth of approximately 4% based on strong private consumption, favorable export performance, good tourist seasons and investments in public sector infrastructure.

The most dynamic economic sectors are manufacturing, construction, retail, and tourism. Likewise, banks have resumed lending. On the other hand, the public sector urgently needs reform. The inflation rate remains stable at around 3%, and the official unemployment rate is too high.

The health of private banking continues to strengthen since privatizations have brought in foreign capital, which now constitutes 90% of assets.

Its main sources of foreign currency are tourism, private remittances, and industrial products: textiles, chemicals, and transportation. Its main markets are the European Union, Italy (23%), and Germany (15%). The largest expenditure of foreign currency in Croatia is on machinery and transportation equipment (35%).

For all the reasons stated above, and from the perspective of Gerling-Ncm Credit Insurance, we see how Croatia is gaining prominence on the international stage and emerging as a strategic destination for Spanish exporting companies. A pioneer is defined by its risk tolerance. This is undoubtedly a definition that many Spanish exporting companies embrace in their search for new markets to offer their goods and services, and Croatia may well be one such example. Therefore, Gerling-Ncm presents itself as an essential ally when analyzing the payment history of potential clients, insuring the company's working capital against the risk of insolvency and strengthening the competitiveness of exports.