For generations, Croatians have left their homeland in search of better opportunities. Today, an estimated 3.2 million people either emigrated relatively recently or have Croatian ancestry. The country’s accession to the European Union in 2013 opened the floodgates for migration, with many seeking work in wealthier EU nations. But while they may have left, they certainly haven’t forgotten home, reports TPortal.

Remittances—money sent back by Croatians living abroad—are growing year by year, now making up a significant portion of the country’s economy. In 2022, transfers from the diaspora accounted for a staggering 7.34% of Croatia’s GDP, the highest proportion of any EU country.

Figures from the Croatian National Bank (HNB) illustrate the scale of these financial lifelines. In 2020, remittances totalled €3.669 billion. By 2021, that figure had exceeded €4.2 billion. In both 2022 and 2023, the total surpassed €5 billion.

In the first nine months of 2024 alone, Croatians abroad sent back €4.641 billion. The full-year figure, expected in spring, could well top €5 billion again, reinforcing Croatia’s dependence on its expatriate workforce.

Germany Leads, but Ireland’s Role is Growing

Germany remains the dominant source of remittances, with over €1 billion arriving each year. In 2020, Croatians in Germany transferred €1.647 billion home, a number that climbed to €1.767 billion in 2021 and then nearly €2 billion in 2022. By 2023, the milestone was broken, with €2.146 billion recorded. In just the first nine months of 2024, the total stood at €1.78 billion.

But Germany isn’t the only player. In recent years, Ireland has emerged as an increasingly important source of income for Croatia’s economy. In 2020, remittances from Ireland stood at €270.5 million. By 2023, that figure had more than doubled to €607.4 million. In the first three quarters of 2024, €504.2 million had already been sent, suggesting another record-breaking year.

Another surprise is the Netherlands, which has seen a significant rise in remittances. In 2020, Croatian workers there sent home just €77 million. By 2023, that number had skyrocketed to €554.5 million—a remarkable increase.

Meanwhile, Austria and Slovenia—longstanding destinations for Croatian migrant workers—continue to contribute significant sums, albeit at a steadier pace. In 2020, each country sent around €180 million in remittances. By 2023, Austria’s contribution had climbed to €436.2 million, while Slovenia’s reached €285 million.

A Country Increasingly Reliant on Its Diaspora

Over the past five years, remittances have consistently accounted for more than 7% of Croatia’s GDP, making it one of the most dependent nations on its overseas workforce. In 2022, the figure hit a record high of 7.45%.

The flow of money is a vital economic buffer, particularly in a country grappling with a shrinking workforce and rising emigration. While remittances bring much-needed financial support to families, they also raise concerns about Croatia’s long-term economic sustainability. As more skilled workers leave, the economy remains heavily reliant on those abroad to support those who stay.

For now, Croatia’s diaspora continues to provide a financial lifeline. But with remittances outpacing revenue from tourism in some years, it raises a difficult question: what happens if the money stops flowing?