Croatia - Industry

Light industry, especially for the production of consumer goods, was more advanced in Croatia than in the other republics of the former Yugoslav SFR. Croatia's main manufacturing industries include chemicals and plastics, machine tools, fabricated metal products, electronics, pig iron and rolled steel products, aluminum processing, paper and wood products (including furniture), building materials (including cement), textiles, shipbuilding, petroleum and petroleum refining, and food processing and beverages.

The collapse of Yugoslavia and the hostilities following Croatia's declaration of independence in 1991 damaged industrial production. Manufacturing employed about 335,000 people in 1995. The textile and clothing industry accounted for about 11% of total industrial output in 1995; the food industry, 17%. Industrial production increased 3.7% in 1998 and accounted for 24% of GDP. Industrial production increased to 33% of GDP in 2002. There is a need for reconstruction of basic infrastructure and housing, which should provide increased activity in the construction sector. The government is pursuing privatization of state-owned enterprises; INA, the national oil and gas company, was due to be sold in 2002.