🇭🇷 Croatia

Croatia is an Adriatic nation of 3.9 million that's become one of Europe's hottest tourism destinations — Dubrovnik's Game of Thrones fame didn't hurt. GDP is about $78 billion. The country joined the EU in 2013 and adopted the euro in 2023, completing its Western integration. Croatia's 1,777-km coastline has over 1,200 islands, though only 48 are inhabited. The country has a strong sporting culture — it reached the 2018 World Cup final with a population smaller than Oregon's. Split and Dubrovnik are UNESCO-listed cities that draw millions of visitors annually.

Tourism contributes about 20% of GDP directly and much more indirectly — over 20 million tourist arrivals per year for a country of under 4 million. Shipbuilding, food processing, and pharmaceuticals are the main industrial sectors. The EU and particularly Germany, Italy, and Slovenia are the top trade partners. Emigration has been a major issue since EU accession — an estimated 300,000 Croatians have left for Western Europe, creating labor shortages.

Croatia invented the necktie — the word "cravat" comes from "Croat," after Croatian mercenaries wore distinctive knotted scarves in the Thirty Years' War. The country also has the world's smallest town, Hum, with a population of about 20. Dubrovnik's city walls have never been breached in their 1,000-year history.

Croatia's euro adoption and tourism boom are positives, but the brain drain is a serious long-term threat. The country needs to develop higher-value industries to keep its young people from leaving.