Purchasing Power Parity (PPP) in Croatia 2024

The International Monetary Fund (IMF) recorded Croatia's Purchasing Power Parity (PPP) GDP in 2024 as 0.46 units. This represents an increase compared to 2023, which stood at 0.44 units. This increase indicates an improvement in the purchasing power of Croatian citizens.

Comparing the last three years (2022-2024), positive growth is evident. During this period, Croatia's PPP GDP increased from 0.41 to 0.46 units, signifying a post-pandemic economic recovery.

The unit in the data presented in this article is the result of IMF calculations of the nominal GDP value of Croatian currency against the international dollar. In its publication, the IMF states that this calculation is used for the purpose of compiling a composite group of countries. The resulting data is not considered a primary source for presenting purchasing power parity (PPP) data.

However, looking further back at the last five years (2020-2024), Croatia's PPP GDP growth experienced contractions in 2020 and 2021. These contractions were caused by the COVID-19 pandemic, which significantly impacted the global economy.

The deepest decline occurred in 2019 with growth of -4.33%. This then rose to 7.79% in 2023. The situation can be described as fluctuating, with a sharp drop followed by significant growth.

On a regional European scale, Croatia ranks 38th in PPP GDP. This ranking has remained unchanged since 2015. This means Croatia still needs to make greater efforts to improve its economic competitiveness in the European region.

The IMF projects that Croatia's PPP GDP will continue to increase until 2030. In 2025, PPP GDP is projected to reach 0.463 units and continue to rise to 0.471 units by 2030. This projection shows optimism for Croatia's future economic growth.

By comparison, among other European countries, Croatia has better PPP GDP growth than Norway, which experienced a contraction of 2.56%. However, Croatia still lags significantly behind Ireland, which recorded PPP GDP growth of 0.93%.