Slavonia, the granary of Croatia, is the most fertile agricultural region. Farming there is characterized by capital-intensive, market-oriented production and larger landholdings. Most of the land previously under social ownership has been nationalized by the Croatian government and is leased to farmers. Major crops of the region are sugar beets, corn (maize), wheat, potatoes, barley, soybeans, sunflowers, and tobacco. Oats, rye, millet, rice, beans, peas, and chicory are also grown. Pigs, cattle, and poultry are important to the economy of the region, while there is also some beekeeping and silkworm cultivation.
The hills of the western part of the para-Pannonian region are characterized by smallholdings, mixed farming, and generally low yields. Fruit growing, viticulture, and cattle and pig breeding are typical agricultural occupations.
The central mountain belt contains some of the poorest land and climate for agriculture. The large areas of meadow and pasture, however, are suitable for raising sheep and cattle, and there is also some cultivation of barley, oats, rye, and potatoes. Fruits grown include plums, apples, pears, sour cherries, sweet cherries, peaches, and apricots.
The Adriatic littoral of Istria and Dalmatia is characterized by rocky soil and long periods of drought, with small parcels of arable land and poor pasture. Sheep and goats are raised, while grapes, olives, almonds, figs, tangerines, and other Mediterranean fruits and vegetables round out the agriculture of this region. Beekeeping is also of some commercial importance, especially on the islands.
Deposits of oil and natural gas are found in the Pannonian valleys of eastern Slavonia, but Croatia consumes more oil and gas than it produces and thus is dependent on imports. Bauxite and coal mining had ceased by the early 21st century. Clay, stone, and gravel are still quarried, however, and gypsum and quartz are mined. There are small deposits of other minerals, including salt, throughout the country. Although Croatia’s numerous rivers offer hydroelectric potential, the country imports a significant portion of its electricity.
Manufacturing
Already more industrialized than most of its neighbours when the communists assumed power overYugoslavia in 1945, Croatia continued its rapid industrialization under socialist policies of economic and social development. One unfortunate result was the squandering of a great deal of money through inefficiency and the misallocation of resources through the building of so-called political factories, which served more to enhance the prestige of politicians than to use most rationally the endowments of a specific region. Nevertheless, large investments in industry (as well as transportation and education) ensured the continued growth of that sector and allowed the absorption into an industrial workforce of Croatia’s rapidly urbanizing population. On the eve of Yugoslavia’s disintegration into war in 1991, industry and mining accounted for more than one-third of Croatia’s GDP.
Today manufacturing and other secondary industries account for a smaller but still important portion of GDP. Significant industries include food processing and wine making, as well as the production and refining of petroleum. Also important are chemical products, building materials, metallurgy (particularly aluminum and iron and steel), the wood and paper industries, machine engineering, electronics, textiles, and shipbuilding. The future of shipbuilding is in question, however, since it is heavily dependent on state subsidies. Most enterprises are concentrated around such urban centres asZagreb, Rijeka, Split, Osijek, Karlovac, Zadar, Slavonski Brod, Sisak, and Varaždin.