For today’s blog, we will present a brief overview of the latest data on deposits and loans in Croatia, followed by a macro perspective to set the context and walk you through some of the broader economic indicators.

As mentioned in our previous posts, Croatia has been on a consistent upward macro path in terms of GDP growth and GDP per capita. This pattern may not be unique globally, but within the EU, Croatia has been among the top performers. As shown in the graph below, GDP growth has outpaced the EU average almost every year, in some periods doubling or even tripling the bloc’s pace. Several key structural drivers are behind this momentum: the adoption of the euro, high absorption of EU funds, improved investment climate, tourism, and the country’s positioning as an emerging market with ample room to grow.

Post-2020, the pace picked up significantly, as seen in the graphs below. Eurozone entry triggered capital inflows and investor confidence, while EU fund utilization surged. At the same time, fiscal discipline improved relative to past periods, supported by strong nominal growth. Public debt was placed on a more stable path, and credit ratings were upgraded. Wage growth accelerated across both public and private sectors, pushing up household incomes and contributing to a broader sense of economic normalization.

Croatia and EU GDP Growth (2017–2024, %); Croatia and EU GDP per Capita and Convergence Ratio (2017–2024, EUR and %)

Source: Eurostat, Macrotrends, InterCapital Research

Croatia’s convergence with the EU is more than a headline; it’s a measurable trend. In 2024, GDP per capita reached over 65% of the EU average, compared to just 42% in 2014. While absolute figures can sometimes distort the picture, the ratio to EU GDP per capita clearly highlights the pace and consistency of this catch-up, as shown in the graph.

Certain trends are observable through it, but it is not closely correlated with the actual well-being of the “average household”. One of the better ways to measure this improvement is “actual individual consumption” (AIC), which more accurately reflects the standard of living. Differences between eastern and southeastern Europe and the west have definitely decreased, but GDP per capita mostly captures the strength of an economy as a whole rather than the real standard of living for citizens.

AIC closely correlates with GDP per capita but provides a more precise picture, as it measures the goods and services consumed by households during a year, regardless of whether they were paid directly or through nonprofit organizations or the state (for example, health care and education). Moreover, it is adjusted for price level differences across countries.

Actual individual consumption (AIC) per capita, 2014-2024, (EU=100)

Source: Eurostat, InterCapital Research

In 2024, Croatia’s AIC stands at 78 percent of the EU average. Above Croatia are Slovenia and Romania, at 85 and 88 percent respectively. Interestingly, in 2014, Romania started from 57, Slovenia from 77, and Croatia from 63. A variety of factors over the past decade, such as EU fund allocation efficiency, demographic shifts, wage trends, investment cycles, and, of course, politics, have influenced this trajectory. Also included in the graph is the European Area, which remains above the EU average.

Shifting from the broader macro context to household-level dynamics, we now turn to the latest data on deposits and loans.

As per the latest data from the Croatian National Bank and the Zagreb Stock Exchange, as of June 2025, total market capitalization on the ZSE reached EUR 54.5bn, marking a 21.5% YoY increase. This figure represents 63.6% of Croatia’s 2024 GDP. If we strip out debt securities and include only equity instruments and ETFs, the capitalization stands at EUR 30.73bn, or 35.9% of GDP. Looking at 2024 as a whole, the total market cap was EUR 50.4bn, which equated to 58.9% of 2024 GDP. Excluding debt instruments, the equity and ETF portion amounted to EUR 29bn, or 34% of 2024 GDP. This indicates not only nominal growth in equity values but also a rising share in relation to national output.

ZSE Market Capitalization (Equity instruments and ETFs), GDP and Market Cap-to-GDP Ratio* (2017–06/2025, EURbn and %)

Source: ZSE, HNB, InterCapitalResearch

*Ratio calculated based on the 2024 GDP

When talking about household loans, they amounted to EUR 25.7bn in May 2025, marking a 12.6% increase YoY. This volume represents 30% of the 2024 GDP. One year earlier, in May 2024, total household loans stood at EUR 22.79bn, or 26.6% of the same GDP base. Since the 2025 GDP figure is not yet available, these relative indicators should be interpreted with caution. Nevertheless, the pace of credit expansion is clearly visible, even in the context of policy measures introduced by the Croatian National Bank aimed at curbing household lending activity.

Housing loans (stambeni krediti) remain the largest segment, reaching EUR 12.5bn in May 2025, or 48.9% of total household lending. This represents an 11.5% increase YoY and a compound annual growth rate (CAGR) of 10.1% since May 2020. The second-largest category is general-purpose cash loans (gotovinski nenamjenski krediti), which totaled EUR 9.8bn or 38.1% of total loans. This category grew 14.2% YoY, with a CAGR of 6.7% since 2020. These loans are primarily used for leisure-related spending, such as shopping, holidays, and lifestyle consumption, often without long-term financial return, which makes their growth dynamic particularly questionable. Combined, housing loans and general-purpose cash loans make up 87% of total household lending.

The remaining 13% consists of overdrafts on current accounts (prekoračenja po transakcijskim računima), credit card loans (krediti po kreditnim karticama), which saw a significant 44% increase YoY, non-purchase mortgage loans (hipotekarni krediti), car loans (krediti za automobile), consumer loans (potrošački krediti), and other residual loan types. These figures reflect loan volumes, not the number of individual loan contracts, which would present a different structural breakdown.

Segmentation of household loans in Croatia (January 2020 to May 2025, EURm)

Source: HNB, InterCapital Research

As of May 2025, household deposits stood at EUR 40.2bn, including both local and foreign currency holdings. This marks an 8.1% increase YoY and represents 47% of Croatia’s 2024 GDP. Households currently hold 66% of total deposits in the financial system, which total deposit amounts to EUR 60.8bn overall. Over the five-year period from May 2020 to May 2025, household deposits have grown at a compound annual growth rate (CAGR) of 6.8%. One year earlier, in May 2024, the household deposit volume was EUR 37.2bn, or 43.4% of the same GDP base.

Looking at the sectoral breakdown, households remain the dominant category with 66% of total deposits as of May 2025, up 8.1% YoY. Non-financial corporations accounted for 26.7%, with a 3.5% increase YoY. Combined, these two sectors hold 92.7% of all deposits.

The remaining 7.3% is distributed across several institutional sectors. General government held 3.1%, insurance companies and pension funds made up 2.5%, and the remaining 1.7% was spread across investment funds (excluding money market funds), other financial intermediaries, and auxiliary financial institutions. Notably, deposits from investment funds rose 30.6% YoY, while deposits held by insurance companies and pension funds surged nearly 82% over the same period.

Segmentation of deposits at other financial institutions in Croatia (January 2020 to May 2025, EURm)

Source: HNB, InterCapital Research

As shown in the graph below, the household deposits-to-GDP ratio in Croatia has followed a downward trend from 2020 to 2023, decreasing from just under 58% to below 38%, before recovering to approximately 47% in 2025. Meanwhile, the household loans-to-GDP ratio gradually declined from around 35% in 2020 to slightly below 27% in 2023, with a modest upward movement in 2024 and 2025, reaching 30% in the latest observed period. All data points are calculated using the GDP value of the corresponding year, with the exception of 2025, where the ratio is based on May 2025 household data and the full-year GDP of 2024. One of the reasons behind the visible decline in both deposit and loan ratios during this period is the impact of COVID-19, which significantly reduced household spending opportunities and credit demand. As economies reopened and confidence returned, both metrics began to rebound, reflecting a recovery in household consumption, increased borrowing activity, and renewed financial engagement.

Household Debt and Deposits to GDP, %

Source: HNB, InterCapital Research

While headline GDP growth confirms Croatia’s steady convergence toward EU averages, the AIC indicator provides a more realistic lens into household living standards, which have also moved upward. On the financial side, the relative increase in stock market capitalization reflects a broader deepening of domestic capital markets, even if still structurally limited. Household-level data shows a clear rise in both credit volumes and deposit accumulation, with loan growth notably outpacing deposits in recent periods. Altogether, the trends point to a more active household balance sheet and a macro environment still benefiting from post-2020 tailwinds.