Croatia

GDP (US$ Billion)

54.50 (2017)

World Ranking 79/192

GDP Per Capita (US$)

13,138 (2017)

World Ranking 60/192

Economic Structure

(in terms of GDP composition, 2017)

Services
(58.5%)
Industry
(22.00%)
Agriculture
(3.00%)

External Trade (% of GDP)

96.3 (2016)

Currency (Period Average)

Croatian Kuna

6.62 per US$ (2017)

Political System

Multiparty republic

Overview

After a protracted six-year recession, Croatia returned to growth in 2015 and is now entering its fifth year of recovery. Private consumption was the main driver of growth in Croatia in 2017 and 2018 and will continue in 2019, thus supporting demand for imports and ensuring they remain ahead of exports in annual growth terms over the coming years. Access to the European Union (EU) internal market helped connect the economy to global value chains, and tourism is experiencing historic highs. The country's ambition to join the eurozone will remain elusive for the foreseeable future, in part due to rising euroscepticism within core countries, which will lessen the willingness to absorb new members. GDP is currently hovering at around 1% lower than in the pre-crisis period, and youth unemployment remains high. The accelerated outmigration of labour, the country’s aging population and slow pace of structural reforms, risk undermining Croatia's growth opportunities.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

July 2013

Croatia joined the EU as its 28th member.

January 2015

Kolinda Grabar-Kiratovic was elected Croatia's first female president.

November 2015

The general election failed to produce an outright winner. Following protracted talks, Tihomir Oreskovic became Prime Minister in January 2016.

July 2016

Parliament was dissolved and fresh elections were called for in September.

September 2016

Elections were held and the Croatian Democratic Union (HDZ) party won the largest number of seats.

October 2016

A coalition government headed by HDZ leader Andrej Plenkovic, took office.

February 2019

Seven islands of the Cres-Losinj archipelago (Cres, Losinj, Unije, Ilovik, Susak, Vele Srakane and Male Srakane) plus the islands of Brac, Hvar and Korcula launched their clean energy transition programme as part of the European Commission (EC)’s Clean Energy for EU Islands Secretariat.

Sources: BBC Country Profile – Timeline, Fitch Solutions, Croatiaweek

Major Economic Indicators
Graph: Croatia real GDP and inflation
 
Graph: Croatia real GDP and inflation
 
Graph: Croatia GDP by sector (2017)
 
Graph: Croatia GDP by sector (2017)
 
Graph: Croatia unemployment rate
 
Graph: Croatia unemployment rate
 
Graph: Croatia current account balance
 
Graph: Croatia current account balance
 

e = estimate, f = forecast

Sources: IMF, World Bank

Date last reviewed: March 16, 2019

External Trade

Merchandise Trade

Graph: Croatia merchandise trade
 
Graph: Croatia merchandise trade
 
 

Source: WTO

Date last reviewed: March 16, 2019

Graph: Croatia major export commodities (2017)
 
Graph: Croatia major export commodities (2017)
 
Graph: Croatia major export markets (2017)
 
Graph: Croatia major export markets (2017)
 
Graph: Croatia major import commodities (2017)
 
Graph: Croatia major import commodities (2017)
 
Graph: Croatia major import markets (2017)
 
Graph: Croatia major import markets (2017)
 

Sources: Trade Map, Fitch Solutions

Date last reviewed: March 16, 2019

Trade in Services

Graph: Croatia trade in services
 
Graph: Croatia trade in services
 
 

e = estimate

Source: WTO

Date last reviewed: March 16, 2019

Trade Policies
  • Croatia has been a member of the WTO since November 30, 2000. As of July 1, 2013, Croatia became a member state of the EU.

  • The EU is party to some 50 free trade agreements (FTAs) and, consequently, access to other markets of the countries concerned is currently mediated through those agreements. The EU’s scheme on generalised system of preferences (GSP) entered into effect on January 1, 2014. Under the scheme, tariff preferences have been removed for imports into the EU from countries where per-capita income has exceeded USD4,000 for four years in a row. Regarding Hong Kong, the territory has been fully excluded from the EU’s GSP scheme since May 1, 1998.

  • Prior to Croatia's accession to the EU, the country had signed over 40 international trade or economic cooperation treaties, with further agreements in place regarding investment promotion and protection. As part of EU membership negotiations, these agreements were adjusted to ensure their validity continued once Croatia joined the EU, or voided as the EU agreement took precedence. Once goods are cleared by customs authorities upon entry into any EU member state, these imported goods can move freely among EU member states without any additional customs procedures.

  • Import tariffs: Croatia applies the EU's Common External Tariff (CET), which means goods manufactured and imported from within the EU are not subject to customs charges. The average tariff rate for Croatia is just 1.3%, which is among the lowest globally, although goods imported from outside the EU will incur duties of between 0-48.5%.

  • Customs and non-tariff barriers: Trade bureaucracy and customs delays are a significant hindrance to foreign investors, particularly those outside of the EU. Though there are increasing efforts to reduce trade bureaucracy, paper-based procedures remain cumbersome and costs and connectivity issues add to market barriers.

  • Anti-dumping and countervailing duties: The EU has imposed various anti-dumping measures on a wide range of products - predominantly in the areas of textiles, parts, steel, iron and machinery on goods coming from China and a few other Asian nations to protect domestic industries. On November 13, 2016, the EC imposed a provisional antidumping duty on imports of some primary and semi-processed metals from China. The rate of duty is between 43.5%-81.1% of the net free-at-Union-frontier price before duty, depending on the company. In the same vein, the rate of duty for similar goods from Belarus is 12.5% of the net free-at-Union-frontier price before duty. In March 2016, the EC imposed a definitive countervailing duty (8.7% or 9.0%) on imports consisting largely of textiles products originating in India.

  • Trade defence measures: In 2016, the EC introduced an import licensing regime for steel products exceeding 2.5 tonnes. The regulation will be active until May 15, 2020.

  • Agriculture: In Q215, the EC issued regulations on trade restrictions with Turkey, regarding cattle, beef, watermelons and prepared tomatoes. This will help to protect domestic agriculture and regional farming businesses.

  • State aid and protected sectors: In March 2016, the EC announced a new support package for European farmers, which involves mobilising an estimated EUR500 million within the next two years. The intervention ceilings for dairy and other farm products have been nearly doubled. This will limit the ability of foreign businesses to export products, such as milk, fruits and vegetables to Croatia.

  • Nine types of goods imported into the EU are subject to licensing. These goods are (broadly):
     
    • textiles;
    • various agricultural products;
    • iron and steel products;
    • ozone- depleting substances;
    • rough diamonds; waste shipment;
    • harvested timber;
    • endangered species;
    • and drug precursors.

  • No quotas are imposed on textiles and clothing exports, as well as non-textile products exports from Hong Kong and the mainland China at present.

  • The Croatian economy is dominated by the services industry (which accounts for almost 70% of GDP), of which tourism is an important element. Tourism accounted for 71.0% of services exports in 2016. Croatia's most valuable traded products are machines, technical equipment, medicine, and crude and refined petroleum. The country is a major manufacturer of passenger and cargo ships and is developing its automobile manufacturing capacity, as well as being a textile manufacturing hub. Croatian product exports stood at USD11.6 billion in 2016, up from USD11.1 billion in 2012. Much of the import sector is dedicated towards Croatia's manufacturing sector (for export products), with machinery, chemical products and base metals making up three of the top five imported products.

Sources: WTO - Trade Policy Review, Fitch Solutions

Trade Agreement

Trade Updates

On September 21, 2017, the Canada Comprehensive Economic and Trade Agreement (CETA) agreement between the EU and Canada provisionally entered into force. It will enter into force fully and definitively when all EU member states parliaments have ratified the Agreement.

Multinational Trade Agreements

Active

  1. The EU Common Market: The transfer of capital, goods, services and labour between member nations enjoy free movement. The common market extends to the 28 member nations of the EU, namely: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

  2. European Economic Area (EEA)-European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway and Switzerland): While it enhances trade flows between these countries and the EU, only Switzerland is a fairly major trading partner.

  3. EU-Turkey: The customs union within the EU provides tariff-free access to the European market for Turkey, benefitting both exporters and importers.

  4. EU-CETA: CETA is expected to strengthen trade ties between the two regions, having come into effect in October 2016. Some 98% of trade between Canada and the EU is duty-free under CETA. The agreement is expected to boost trade between partners by more than 20%. CETA also opens up government procurement. Canadian companies will be able to bid on opportunities at all levels of the EU government procurement market and vice versa. CETA means that Canadian provinces, territories and municipalities are opening their procurement to foreign entities for the first time, albeit with some limitations regarding energy utilities and public transport.

  5. EU-Japan Trade Agreement: In July 2018, the EU and Japan signed a trade deal that promises to eliminate 99% of tariffs that cost businesses in the EU and Japan nearly EUR1 billion annually. According to the EC, the EU-Japan Economic Partnership Agreement (EPA) will create a trade zone covering 600 million people and nearly a third of global GDP. The result of four years of negotiation, the EPA was finalised in late 2017 and is expected to come into force in February 2019 after the EU Parliament ratified the agreement in December 2018. The total trade volume of goods and services between the EU and Japan is an estimated EUR86 billion. The key parts of the agreement will cut duties on a wide range of agricultural products and it seeks to open up services markets, in particular financial services, e-commerce, telecommunications and transport. Japan is the EU's second biggest trading partner in Asia after China. EU exports to Japan are dominated by motor vehicles, machinery, pharmaceuticals, optical and medical instruments, and electrical machinery.

  6. EU-SADC EPA (Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland): An agreement between EU and SADC delegations was reached in 2016 and is fully operational for SADC members following the ratification of the agreement by Mozambique. The remaining six member of SADC no included in the deal (the Democratic Republic of the Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe) are seeking economic partnership agreements with the EU as part of other trading blocs – such as with East or Central African communities.

Provisionally Active

The CETA: The CETA is an agreement between the EU and Canada. CETA was signed in October 2016 and ratified by the Canadian House of Commons and EU Parliament in February 2017. However, the agreement has not been ratified by every European state and has only provisionally entered into force. CETA is expected to strengthen trade ties between the two regions, having come into effect in 2016. Some 98% of trade between Canada and the EU will be duty free under CETA. The agreement is expected to boost trade between partners by more than 20%. CETA also opens up government procurement. Canadian companies will be able to bid on opportunities at all levels of the EU government procurement market and vice versa. CETA means that Canadian provinces, territories and municipalities are opening their procurement to foreign entities for the first time, albeit with some limitations regarding energy utilities and public transport.

Ratification Pending

  1. EU-Central America Association Agreement (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Belize and the Dominican Republic): An agreement between the parties was reached in 2012 and is awaiting ratification (29 of the 34 parties have ratified the agreement as of October 2018). The agreement has been provisionally applied since 2013.

  2. EU-Singapore FTA (EUSFTA): On February 13, 2019, the European Parliament passed the agreement which would see the creation of the EUSFTA. However, before the agreement is implemented, all the states involved will need to ratify the agreement through their individual legislatures; in this case, the FTA may become provisionally active along the lines of states which have already ratified the agreement.

Under Negotiation

  1. EU-Australia: The EU, Australia's second largest trade partner, has launched negotiations for a comprehensive trade agreement with Australia. Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost EUR48 billion in 2017, and bilateral trade in services added an additional EUR27 billion. The negotiations aim to remove trade barriers, streamline standards and put European companies exporting to or doing business in Australia on equal footing with those from countries that have signed up to the Trans-Pacific Partnership or other trade agreements with Australia. The Council of the EU authorised opening negotiations for a trade agreement between the EU and Australia on May 22, 2018.

  2. EU-United States (Trans-Atlantic Trade and Investment Partnership): This agreement was expected to increase trade and services, but it is unlikely to pass under the Trump administration in the United States against the backdrop of rising global trade tensions.

  3. EU-Vietnam FTA: In July 2018, the EU and Vietnam agreed on final texts for the EU-Vietnam FTA and the EU-Vietnam Investment Protection Agreement (IPA). As of March 2019, the final text of the agreement has been finalised and is awaiting signature and conclusion.

Sources: WTO Regional Trade Agreements database, Fitch Solutions

Investment Policy

Foreign Direct Investment

 

Graph: Croatia FDI stock
 
Graph: Croatia FDI stock
 
Graph: Croatia FDI flow
 
Graph: Croatia FDI flow
 

Source: UNCTAD

Date last reviewed: March 16, 2019

Foreign Direct Investment Policy

  1. The government is supportive of foreign investment and, as well as undertaking regulatory reform, it has established the Investment Promotion and Competition Directorate, based in the Ministry of Economy, which is tasked with providing advice and strategies for investment promotion and the removal of investment barriers. There are no performance requirements for foreign companies, and few restrictions on foreign exchange.

  2. With a highly supportive government and lack of restrictions on foreign investment, Croatia scores highly in terms of investment freedom. There have been no instances of government appropriations of foreign investments in recent years, and it is highly unlikely Croatia would do anything to jeopardise the flow of Foreign Direct Investment.

  3. Investment opportunities in Croatia were the focus of the UN Organisation for Industrial Development, Unido International Solar Energy Center for Technology Promotion and transfer (UNIDO-ISEC) which took place on November 3, 2018 in Beijing. During the event, UNIDO ISEC leaders pledged USD1.2 billion towards the reconstruction of war-torn areas.

  4. Substantial tax incentives are provided, including up to 100% reduction in corporate profit tax for foreign investors, with the government also having introduced real estate incentives to encourage investment in more rural areas of the country.

  5. Foreign property ownership is restricted. Although EU member states can purchase property on the same basis as Croatian citizens, for those outside of the EU, property rights are based on reciprocity (dependent upon whether Croatian citizens can purchase property in the corresponding country). These restrictions do not apply for foreign investors incorporated as a Croatian legal entity. The Ministry of Economy, Entrepreneurship and Crafts has presented a programme of regional support for capital investments aimed at maintaining or increasing employment figures, valued at HRK90 million. He also pointed to a further HRK250 million which has been earmarked for projects designed to increase value and export shares.

  6. Croatia is keen to establish itself as a centre for automotive manufacturing and, as such, has been developing the Croatian Automotive Cluster since 2007. This cluster has 50 members and is active in research and development, as well as automotive parts production and assembly. Another four clusters have been established in shipbuilding, textile manufacturing, agricultural equipment and interiors, with around 140 member companies in total.

  7. The Croatian Bank for Reconstruction and Development (HBOR), as of 2015, supports local manufacturers in the construction of ferries and tankers for the Turkmenistan and Norwegian governments. In 2014, the bank also signed a credit agreement worth USD84 million with Russian developers for the construction of a holiday resort in Russia on the condition that construction materials and services are sourced from Croatia, which would benefit more than 50 Croatian companies. This demonstrates that local manufacturers will receive funding priority, which may make it more challenging for foreign companies to receive financial support in certain heavy manufacturing industries.

  8. There are currently 831 companies in full state ownership, and legislation provides that private entities can compete with state-owned enterprises (SOEs) under the same conditions with regard to access to markets, credit and other business operations. In practice, though, there have been instances where political influence in the SOEs had a negative effect on competition, as the supervisory boards of SOEs include political figures that report directly to the government.

Sources: WTO – Trade Policy Review, The International Trade Administration, US Department of Commerce, Fitch Solutions, Dubrovnik Times

Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
13 free trade zones (FTZs) are located at the sea ports of Pula, Rijeka, Split and Ploče, and other strategically located zones in Krapina-Zagorje, Kukuljanovo, Osijek, Ribnik, Slavonski Brod, Split-Dalmacija, Varaždin, Vukovar and Zagreb.
 
- Exemption from custom duties and VAT



- Expedited customs procedures



- Local logistics hubs



- For investment in development and innovation activities, a non-refundable grant shall be approved for the purchase of plant/machinery amounting to 20% of the actual eligible costs for purchasing plant/machinery, in the maximum amount of EUR500,000, provided that the purchased plant/machinery represents high technology equipment.
 
General incentives - An incentive can be granted for the investment project if the minimum investment in fixed assets is EUR5 million and 50 new jobs are created within a three-year period from the start of the project. The percentage of non-refundable subsidies depend on the unemployment rate of the county where investment is located. Those projects can benefit from additional non-refundable subsidies between 10% and 20% of the eligible costs of investments for:


 
  • Construction of a new factory, production facility, or tourist facility
  • Buying of new machines (i.e., production equipment)


- The non-refundable subsidies could be up to EUR1 million, depending on the applied percentage of the eligible costs, with the condition that the part of investment in the machines/equipment equals at least 40% of the investment and that at least 50% of those machines/equipment are of high technology.



- Labour intensive investment projects in fixed assets are those with at least 100 new jobs created within a three-year period from the start of the project. Initial employment incentives can be increased by an additional 25% for up to 300 new jobs, 50% for a minimum of 300 new jobs, and up to 100% for minimum 500 new jobs.

Sources: US Department of Commerce, Fitch Solutions

Taxation – 2019
  • Value Added Tax: 5%, 13%, 25% on sale of goods, services and imports
  • Corporate Income Tax: 18%

Sources: Tax Administration, Republic of Croatia

Important Updates to Taxation Information

The headline corporate tax rate in Croatia is 18%. However, Croatia has so many corporate tax exemption schemes that the majority of businesses do not need to pay any corporate profit tax.

Business Taxes

Type of Tax Tax Rate and Base
Resident company: Corporate Tax Rates - Standard rate: 18%

- The corporate tax level is reduced to 7% for the first 10 years, if a company invests EUR1.5-4 million and employs at least 30 people. The corporate tax rate is reduced to only 3% if a business invests EUR4-8 million and the company employs at least 50 people. Full corporate tax exemption is granted, if the company invests more than EUR8 million and employs more than 75 people. Furthermore, companies gain tax holidays when they base themselves in certain areas, such as hill and mountain areas and free trade zones.
Resident company: Capital Gains Tax Capital gains tax is due on interest from the disposal of property and intangible assets and the tax is withheld at source while the individual cannot claim expenses or personal allowances. A non-taxable threshold for dividends and profit shares of HKR12,000 per annum can be claimed.
Dividends (Withholding Tax) 12%
Interest, Royalties (Withholding Tax) 15%
Branch Tax Rate 20% on profits
Social security contributions (all employers) 17.2% on gross salaries paid by employer; 20% on gross salaries paid by employee
VAT/GST (standard) - 25%

- Certain lower rates apply: 5%, 13% to select goods, services and imports
Real Estate Transfer Tax; levied on the acquisition of real estate 4%

Sources: Tax Administration, Republic of Croatia

Date last reviewed: March 16, 2019

Foreign Worker Requirements

The Ministry of Labour announced in June 2018 that the country required 35,500 foreign workers up from the 31,000 it had initially anticipated requiring. The workers are necessary to support Croatia's booming tourism industry.

Localisation Requirements

Due to the high emigration levels of highly qualified individuals from Croatia, the country is flexible when it comes to importing labour to meet its market needs. Although the country is a part of the EU and is open to international migrants, the majority of migrants are unskilled workers from neighbouring countries. This is a cause of domestic tension, considering Croatia's already very high unemployment rates.

Foreign Worker Permits

In recent years, due to EU membership, the Croatian government has been under pressure to increase annual work permit quotas by 40% for foreign workers. As an EU member, Croatia can easily recruit for its skills shortages from within the Union, as citizens have freedom of mobility. Work permits for non-EU nationals are issued for a period of up to two years (EU Blue Card) and require the applicant to go through a higher number of bureaucratic procedures than citizens of the EU.

Visa/Travel Restrictions

African and some Asian, Middle Eastern and Latin American countries require a visa. As a member of the EU, Croatia does not impose any travel restrictions upon any other European state. Countries such as the United States, Canada, Australia, Japan and South Korea, along with a number of Latin American states, likewise, do not face any travel restrictions. However, African citizens, along with most Asian and Middle Eastern citizens, may not travel to Croatia without obtaining a visa in advance.

Sources: Government websites, Fitch Solutions, Total Croatia News

Risks

Sovereign Credit Ratings


 
Rating (Outlook) Rating Date
Moody's
 
Ba2 (Stable) 10/03/2017
Standard & Poor's BB+ (Positive) 21/09/2018
Fitch Ratings
 
BB+ (Positive)
 
07/12/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

Competitiveness and Efficiency Indicators


 
World Ranking
 
2017 2018 2019
Ease of Doing Business Index
 
43/190 51/190 58/190
 
Ease of Paying Taxes Index
 
49/189 95/190 89/190
Logistics Performance Index
 
N/A 49/160 N/A
Corruption Perception Index
 
57/180 60/180 N/A
IMD World Competitiveness 59/63 61/63 N/A

Sources: World Bank, IMD, Transparency International

Fitch Solutions Risk Indices


 
World Ranking
2017 2018 2019
Economic Risk Index Rank N/A 65/202 66/202
 
Short-Term Economic Risk Score 64.4 63.3 62.3
 
Long-Term Economic Risk Score 57.8 59.2 61.3
 
Political Risk Index Rank N/A 60/202 61/202
Short-Term Political Risk Score 65.0 66.3 66.3
 
Long-Term Political Risk Score 71.4 71.4 71.4
 
Operational Risk Index Rank N/A 43/201 41/201
Operational Risk Score 63.8 63.8 64.1
 

Source: Fitch Solutions

Date last reviewed: March 16, 2019

Fitch Solutions Risk Summary

ECONOMIC RISK

Croatia's short-term economic outlook has improved as domestic demand recovers. Even as austerity is progressively relaxed, Croatia's fiscal position will not deteriorate substantially, thanks to solid growth in revenues. This will be underpinned by a strong private consumption outlook and a robust tourism sector.

Most significantly, a reduced budget deficit will ease the immediate risks to stability and public debt remains high by both emerging and developed market standards, leaving the country vulnerable to shocks. The Croatian National Bank will maintain its quasi euro peg, which we view as stable and, thus, continue to track European Central Bank monetary policy.

OPERATIONAL RISK

Croatia offers a relatively safe operating environment and is one of the most appealing destinations for investment in the South East Europe region. Foreign and local businesses, alike, face limited crime and security risks, and the country benefits from having a strong police force and membership of various regional security initiatives.

Source: Fitch Solutions

Date last reviewed: March 16, 2019

Fitch Solutions Political and Economic Risk Indices

Graph: Croatia short term political risk index
 
Graph: Croatia short term political risk index
 
Graph: Croatia long term political risk index
 
Graph: Croatia long term political risk index
 
Graph: Croatia short term economic risk index
 
Graph: Croatia short term economic risk index
 
Graph: Croatia long term economic risk index
 
Graph: Croatia long term economic risk index
 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Economic and Political Risk Indices

Date last reviewed: March 16, 2019

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Croatia Score 64.1 51.9
 
56.6
 
71.3
 
76.7
 
Southeast Europe Average 57.6
 
52.8 58.8 59.5
 
59.4
Southeast Europe Position (out of 12) 2
 
9
 
10
 
2
 
2
 
Emerging Europe Average 55.9 53.8 57.7 57.0 55.2
Emerging Europe Position (out of 31) 4
 
20
 
20
 
4
 
4
 
Global Average 49.6
 
49.7 49.9 49.0 49.8
Global Position (out of 201) 41
 
88
 
79
 
34
 
29
 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Graph: Croatia vs global and regional averages
 
Graph: Croatia vs global and regional averages
 
Country
 
Operational Risk Index
 
Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk Index Crime and Security Risk Index
Slovenia
 
68.6 54.0
 
63.4 73.5 83.4
Croatia 64.1 51.9
 
56.6 71.3 76.7
Romania 62.4 57.1 61.0 63.0 68.5
Cyprus 62.3 55.1 64.2 61.3 68.8
Bulgaria
 
60.2 55.5 64.1 60.1 61.1
Serbia
 
57.2 58.5 60.7 57.0 52.5
Montenegro
 
56.7 52.8 58.1 56.6 59.3
North Macedonia 56.2 47.2 64.1 56.2 57.3
 
Turkey
 
54.8 52.0 60.4 64.9 42.0
Kosovo 51.5 55.2 58.3 52.0 40.7
Albania 51.1 49.0 49.1 49.7 56.8
Bosnia and Herzegovina 46.6 45.5 46.3 48.5 45.9
Regional Averages 57.6 52.8 58.8 59.5 59.4
Emerging Markets Averages 46.7 48.0 45.5 47.4 46.0
Global Markets Averages 49.6 49.7 49.9 49.0 49.8

 

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Date last reviewed: March 16, 2019

Hong Kong Connection

Hong Kong’s Trade with Croatia

Graph: Major export commodities to Croatia (2018)
 
Graph: Major export commodities to Croatia (2018)
 
Graph: Major import commodities from Croatia (2018)
 
Graph: Major import commodities from Croatia (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Croatia (by consignment)

Date last reviewed: March 16, 2019

Graph: Merchandise exports to Croatia
 
Graph: Merchandise exports to Croatia
 
Graph: Merchandise imports from Croatia
 
Graph: Merchandise imports from Croatia
 

Note: Graph shows Hong Kong exports to/imports from Croatia (by consignment)

Exchange Rate HK$/US$, average

7.75 (2014)

7.75 (2015)

7.76 (2016)

7.79 (2017)

7.83 (2018)

Source: Hong Kong Census and Statistics Department

Date last reviewed: March 16, 2019


 
2017
 
Growth rate (%)
Number of Croatian residents visiting Hong Kong 4,169
 
6.1
 

Sources: Hong Kong Tourism Board, Fitch Solutions


 
2017
 
Growth rate (%)
Number of European residents visiting Hong Kong 1,929,824
 
-0.2
Number of emerging europe citizens residing in Hong Kong 89 1.13

Sources: Hong Kong Tourism Board, Fitch Solutions

Date last reviewed: March 16, 2019

Commercial Presence in Hong Kong


 
2017
 
Growth rate (%)
 
Number of Croatian companies in Hong Kong N/A
 
N/A
- Regional headquarters
- Regional offices
- Local offices



Treaties and Agreements between Hong Kong and Croatia

  • China-Croatia Bilateral Investment Treaty; the treaty has been in force since July 1, 1994
  • China-EC Trade and Cooperation Agreement
  • China-Croatia Taxation Treaty, signed on September 1, 1995, effective from January 1, 2002

Sources: UNCTAD, ChinaTax.gov

Chamber of Commerce (or Related Organisations) in Hong Kong

Croatian Consulate in Hong kong

Address: 64/F, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong

Email: croatia@hhlmail.com

Tel: (852) 2528 4975



Source: Protocol Division Government Secretariat

Visa Requirements for Hong Kong Residents

  • Hong Kong residents are entitled to a visa-free entry to Schengen countries lasting no more than 90 days in any six-month period from the date of first entry in the territory of the member states.

  • The Hong Kong Document of Identity is recognised by all Schengen countries. The holders of such documents, however, need to apply for a Schengen visa.

  • The Consulate General of Croatia accepts visa applications only if Croatia is the country of your main destination (if you are going for tourism, the main country of your destination is the one where you spend the longest time, not necessarily the country of your first entry).

Source: Hong Kong Immigration Department

Date last reviewed: March 16, 2019

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