Economy and Business

The Croatian industrial sector is intensively changing and the effects of the full scale and strategically thought out restructuring of this sector are evident in many areas, from privatisation to the strengthening of exports to western markets, development of new products and innovations to existing products and manufacturing processes, to increasing the level and standardisation of quality, satisfying environmental protection conditions, reaching cost effectiveness, etc.

2001 industrial production growth totalled 6% in comparison with 2000, and approximately the same growth rate is expected in 2002.

In 2001 the industry employed more than 250,000 workers, who represent 25 percent of Croatia’s total workforce. Within the industry the largest total income comes from the production of food and beverages, followed by petroleum, chemicals, electrical manufacturing, paper, printing and publishing, and shipbuidling. Regarding exports shipbuilding, food and beverages lead the way followed by the metal and electrical industries.

Industrial goods account for 95% of Croatia’s total exports and the highest share in Croatia’s GDP. The industry remains the most important branch of the Croatian economy.

The future of Croatian industry lies in the area of accessing new markets, introducing modern technologies and new products, as well as forming joint ventures and strategic partnerships with foreign companies. A skilled labour force and highly educated experts in engineering and computer technology supported through technology centres at the technical schools within Croatian Universities represent a good foundation for foreign investments in advanced technologies.

Croatian Chamber of Commerce