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Backgrounds: Croatia Economy Intro
Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output perhaps one-third above the Yugoslav average. The economy emerged from its mild recession in 2000 with tourism the main factor, but massive structural unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is largely the result of coalition politics and public resistance, particularly from the trade unions. Opponents fear reforms would cut jobs, wages, and social benefits. The government has a heavy back log of civil cases, many involving tenure land. The country is likely to experience only moderate growth without disciplined fiscal and structural reform.
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