Croatia, a parliamentary republic in Central Europe that sits along the Adriatic Sea, is bordered by Slovenia to the north, Hungary and Serbia to the east, and Bosnia and Herzegovina to the south. Croatia is divided into 20 counties and the city of Zagreb, which is also the capital of Croatia. The official language of Croatia is Croatian, and the currency is the kuna (HRK).
Croatia was part of the Austro-Hungarian Empire until the end of World War I. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became a federal social independent state. Croatia declared its independence from Yugoslavia in 1991.
On 1 July 2013, Croatia became the 28th European Union (EU) member state.
Gross domestic product (GDP) in real terms in 2017 was 2.8% higher compared to 2016. In the last quarter of 2017, gross added value increased in real terms by 1.3% compared to the same quarter in 2016. The largest positive contribution of the GDP volume change in the fourth quarter of 2017 was realised in the final consumption expenditure of households.
Economic trends had a positive impact on the labour market in 2017. In the period from January to December 2017, the average monthly gross earnings per person had a nominal increase of 3.9% and a real one of 2.8%, as compared to the same period of 2016. In the same time, the average monthly paid off net earnings per person had a nominal increase of 5.3% and a real one of 4.2%.
Although the average annual inflation rate was -1.1% in 2016, by the end of the year the core inflation rate was positive, which continued in 2017, and it amounted to 1.4% in December. Prices of goods and services used for personal consumption, measured by the consumer price index (CPI), were lower in December 2017 compared to November 2017 and rose in average by 1.2% compared to December 2016.
The client base of PwC Croatia includes some of the largest Croatian and multinational companies in Croatia. We have approximately 200 professionals in Croatia who are focused on providing innovative advice and solutions. Our teams of local and expatriate professionals have the skills and the experience in all areas of taxation, corporate and personal, direct and indirect, to help clients grow and develop.