Croatia economy at a glance

Latest figures for Croatia: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Croatia on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	4.4%	October 2026	4.3% September 2026
Core inflation (excluding food and energy)	3.2%	October 2026	3.3% September 2026
Real GDP growth (year on year)	1.7%	Q2 2026	2.3% Q1 2026
Policy rate (European Central Bank)	2.50%	November 2026	2.50% October 2026
Unemployment rate	4.3%	September 2026	4.3% August 2026
10-year government bond yield	3.59%	September 2026	3.58% August 2026
Retail sales (year on year)	2.9%	September 2026	3.2% August 2026
Industrial production (year on year)	7.0%	September 2026	5.2% August 2026
Wages (year on year)	8.9%	Q2 2026	9.2% Q1 2026
House prices (year on year)	12.7%	Q2 2026	14.3% Q1 2026
Stock market (CROBEX (Zagreb Stock Exchange))	4,546	October 2026

Questions and answers

What is the inflation rate in Croatia?

Croatia's annual inflation rate was 4.4% in October 2026, up from 4.3% in September 2026.

What is the interest rate in Croatia?

The European Central Bank deposit facility rate is 2.50% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is Croatia's economy growing?

Croatia's real GDP grew 1.7% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 2.2% in 2026 and 2.3% in 2027.

What is the unemployment rate in Croatia?

Croatia's unemployment rate was 4.3% in September 2026, unchanged from August 2026.

What is Croatia's 10-year government bond yield?

Croatia's 10-year government bond yield averaged 3.59% in September 2026.

How much government debt does Croatia have?

Croatia's government debt is about 55.7% of GDP (latest annual figure), with a budget deficit of 3.0% of GDP.

What is Croatia's credit rating?

Croatia's sovereign credit ratings: S&P A, Moody's A3, Fitch A-.

What is the VAT rate in Croatia?

Croatia's standard VAT rate is 25% (2026 rules).

What is the corporate tax rate in Croatia?

Croatia's corporate income tax rate is 18.0% (2026 rules).

Who leads Croatia?

Croatia is led by Prime Minister Andrej Plenković (HDZ); President Zoran Milanović (head of state, second term since Feb 2025). Next election: Parliamentary election due by 2028; next presidential election 2029-30.

Outlook

The IMF (Oct 2026 WEO) expects growth to slow from 3.4% in 2025 to 2.2% in 2026 and 2.3% in 2027, and Fitch sees 2.4% for 2026. Erste analysts expect domestic demand and a tight labour market to keep supporting growth, but EU recovery-fund momentum is fading into 2027. The main risk is sticky inflation: HICP was back above 4% in September, wages are growing about 9% y/y, house prices are rising about 13% y/y, and the IMF projects 4.5% average inflation in 2026, which erodes tourism competitiveness. A weaker post-season or energy spike would add downside, while continued debt reduction could bring further upgrades from Fitch and Moody's.

Why Croatia matters for the world economy

Croatia's global footprint is small. Its main external channels are tourism, energy infrastructure and the Western Balkans. Tourism revenue reached a record €4.6bn in H1 2026 and draws mostly on German, Austrian, Slovenian and Central European visitors, so euro-area household demand feeds directly into Croatian growth. The Krk LNG terminal and the JANAF/Adria oil pipeline give Hungary, Slovenia, Serbia and Bosnia a non-Russian supply route, which raises Croatia's strategic importance during the 2026 energy shock. Its banks are largely owned by Italian and Austrian groups (UniCredit, Intesa, Erste, Raiffeisen), and Croatian firms are major investors and exporters in Bosnia and Herzegovina and Serbia.

Politics

Plenković's centre-right HDZ has led the government since 2016 and since 2024 has governed in coalition with the nationalist Homeland Movement. He frequently clashes with the left-leaning President Milanović, especially on foreign and defence policy, but the cabinet is not under immediate threat. A February 2026 row over a Homeland Movement MP strained the coalition, but Plenković ruled out early elections. The main economic issue is inflation, which is among the highest in the euro area. The government intervenes weekly in fuel prices and is seeking EU permission to cut fuel excise below the EU minimum; Plenković says these measures keep inflation about a third lower than it would otherwise be. Fiscal policy is steady, with a deficit near 3% of GDP and debt around 56%, and ratings have been upgraded into the A range.

System: Unitary parliamentary republic.

Economy and taxes

GDP: US$105 billion
Population: 3.9 million
Government debt: 55.7% of GDP
Budget balance: −3.0% of GDP
Current account: −3.5% of GDP
Exports: 48.0% of GDP
Main exports: Refined petroleum and electricity, pharmaceuticals and chemicals, electrical machinery and transport equipment, wood and wood products, food and beverages, textiles. Services exports are dominated by tourism (roughly 10-15% of GDP).
Top export markets: Germany (12.7%), Slovenia (11.8%), Italy (11.6%), Bosnia and Herzegovina (10.8%), Serbia (5.5%)
IMF growth forecast: 2.2% in 2026, 2.3% in 2027
IMF inflation forecast: 4.5% in 2026, 3.3% in 2027
Currency: EUR
Top income tax rate: 33.0%
Gold reserves: 0.0 tonnes (September 2026)
Energy self-sufficiency: 27% (2024)

Recent news

4 November 2026 Croatian inflation reaches 4.9% as energy prices jump 20.7% Government of Croatia
Statistics Croatia's flash estimate put October inflation at 4.9%, with energy up 20.7% but food, drink and tobacco up only 0.2%. Finance Minister Ćorić says inflation would be under 2% without the energy shock and expects a rapid fall in 2027; the 2027 budget is due next week.
4 November 2026 Planned 1 GW AI data centre would lift Croatia's power demand by about a third Total Croatia News
Developers of the Pantheon data-centre campus in Topusko expect to sign a grid connection contract with operator HOPS in November for 1 GW of supply, against national load of 2,000-3,000 MW. Building would start in 2027, but local opposition is strong.
26 October 2026 Plenković expects 2.3% growth and nominal GDP above EUR 100bn this year Government of Croatia
The prime minister told the Economic and Social Council that the deficit will stay under the EU's 3% limit and public debt is below 60% of GDP and falling, while weekly government fuel-price caps keep pump prices well below market levels.
16 October 2026 Croatian HICP inflation rises back to 4.3% Eurostat
Eurostat's September data showed Croatia's harmonised inflation up from 3.7% to 4.3%, driven by energy. That keeps it above the euro-area average of 3.8% ahead of the ECB's 29 Oct meeting.
13 October 2026 Zagreb's CROBEX climbs to an 18-year high Trading Economics
The benchmark index rose to about 4,522 points, its highest since early 2008, extending a gain of roughly 20% over 12 months.
2 October 2026 Plenković credits fuel interventions with keeping inflation near 4.7% Total Croatia News
With the DZS flash estimate showing national CPI at 4.7% in September, the PM argued that, without state price measures, inflation would be around 7%. The government is also seeking EU leave to cut fuel excise below the minimum.

Headlines and summaries are compiled daily from the linked reports with AI assistance.