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Regional economic accounts (reg_eco10)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Croatian Bureau of Statistics

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Regional accounts are a regional specification of the national accounts and therefore based on the same concepts and definitions as national accounts (see domain nama10). The main specific regional topics are addressed in chapter 13 of ESA2010, but not practically specified. For practical rules and recommendations on sources and methods see the publication "Manual on regional accounts methods".

Gross domestic product (GDP) at market prices is the final result of the production activity of resident producer units. In Croatia GDP is compiled using the output approach accounts it can be calculated from:

GDP is the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products (which are not allocated to sectors and industries). 

Before distributing national GVA data using adequate keys, the data are calculated using indicators derived from the sources.

Regional gross fixed capital (GFCF) formation is compiled in line with annual gross fixed capital formation. During compilation process of GFCF, database of investments is created by NACE activity, institutional sector, type of asset and by county from which we can obtain NUTS2 region. This database is then used to fill all the transmission tables in which GFCF is found, from GDP tables, non-financial sector accounts tables to tables on fixed assets and regional accounts tables. 

National accounts employment data are compiled in accordance with European System of Accounts - ESA 2010 as defined in Annex B of the EU regulation 2023/734, which amended the European system of regional and national accounts (ESA 2010). The transmission programme defines compulsory data transmissions from September 2014 onwards. ESA 2010 is aligned with the international statistical standard - the SNA 2008 - published by the United Nations.

As defined in ESA 2010, the employment in Croatia distinguishes two employment concepts: national and domestic. The national concept measures the number of resident persons in employment while the domestic concept refers to employment in resident production units irrespective of the place of residence of the employed person. The domestic concept of employment, in both persons and hours worked is constantly improved to be consistent with other main aggregates. Employment in persons according to the domestic concept is allocated to the NUTS3 level, while employment in working hours is allocated to the NUTS2 level. The domestic concept of employment (in persons and hours worked) is consistent with GDP and other national accounts variables and is presented by regions (along with an industry level).

Compensation of employees is calculated with the top-bottom method using national data which are distributed using adequate keys. 

The estimate of disposable income of the household sector is based on two methodological concepts of accounts: allocation of primary income and secondary distribution of income. Each concept of account contains characteristic aggregates that are estimated from different sources. The total amounts of the aggregates correspond to the amounts in the non-financial sector accounts (i.e. the household sector), while regionalization is estimated based on administrative sources, constructed regional indicators based on data from other state administration bodies (employment agency, pension insurance agency, health insurance agency, etc.).

30 October 2025

The regional gross domestic product (GDP) is used to measure and compare the economic activity of regions. It is the most important indicator for the selection of regions eligible for support under the investment for growth and jobs goal of the EU's regional policy.

For national publication, GDP for Croatia is compiled annually by the Croatian Bureau of Statistics at national level in accordance with ESA 2010. Regional GDP is not compiled independently, but is derived through the regional allocation of national aggregates. Gross domestic product at market prices is obtained by adding taxes on products and subtracting subsidies on products to gross value added. Gross value added is first compiled at national level by activity. For the purposes of regional accounts, national gross value added by activity represents the starting point for regionalisation. Regional GVA is obtained through an indirect top-down allocation of national values to counties (NUTS 3 level). Distribution keys are derived from regional indicators that reflect the territorial distribution of economic activity. Depending on the activity, these indicators include industrial production, gross wage bill, turnover in services, value of construction works, retail trade turnover, tourism indicators and real estate transactions.

Regional indicators are transformed into year-on-year indices and applied to the previous-year regional levels to derive current-year allocation keys. These keys are applied to national GVA by activity, ensuring that the sum of regional values equals the national total for each activity and year.

Regional GDP at NUTS 2 level is obtained by aggregating the county-level results. Taxes on products and subsidies on products are allocated to regions using the same GVA-based distribution keys. As a result, regional GDP is calculated as the sum of regional gross value added plus taxes on products minus subsidies on products, while full consistency between national and regional aggregates is preserved.

Other production-based variables used in the compilation of regional GDP, such as compensation of employees, are compiled at national level and allocated to regions using appropriate indicators, ensuring coherence with the production accounts and national totals.

Regional gross domestic product data on Eurostat's website are Eurostat estimates based on a harmonized methodology. Figures for gross value added at basic prices are used as the basic variable for the estimates. Extra-regio data (i.e. value added created in national regions than on national territory, e.g. in embassies, foreign army bases, offshore energy production, etc.) is treated like any other region; however as there is no population in the extra-regio there is no GDP per capita for the extra-regio.

The conversion to purchasing power standards (PPS) is based on national purchasing power parities (PPP) which are also regularly calculated and released by Eurostat. Regional PPP are not available. All regional accounts data published by Eurostat are based on PPP for the EU Member States.

Household disposable income is the total amount of money households have available for spending and saving after subtracting income taxes and pension contributions.  The estimate of disposable income of the household sector is based on two methodological concepts of accounts: allocation of primary income and secondary distribution of income. According to the Manual on regional accounts methods (Eurostat 2013), the primary income account is used to determine the primary income of households resident in the regional territory. Net balance of primary incomes is the compensation of employees received plus net operating surplus from their own-account production of housing services, plus net mixed income, plus property income received by resident households minus property income payable by resident households. The net balance of primary incomes is an indicator of the capacity of households resident in a region to generate an income as entrepreneurs, employees or recipients of property income, in the region of their residence, in other regions or abroad. The secondary distribution of income account of households records transactions which, for households resident in the regional territory, constitute a redistribution of income in cash. These transactions comprise social benefits and contributions, current taxes on income, wealth etc. and other current transfers, such as net premiums, accident insurance claims, current international cooperation, and miscellaneous current transfers, such as current transfers between households. 

The regionalized employment data, based on the domestic concept, are available for total economy and by economic activity. In summary, the key concepts are population and employment. Employment covers all persons engaged in some productive activity within the production boundary of the national accounts. Employed persons by region are either employees (working by agreement for another resident unit and receiving remuneration or self-employed (sole or joint owners of unincorporated enterprises). Regionalization is based on the indicators derived from the administrative sources.

Regional gross fixed capital formation (GFCF) is compiled in line with annual gross fixed capital formation. It is detailly explained in GNI Inventory of Croatia, chapter 5.10.  

For the methods of data compilation and collection see the publication "Manual on regional accounts methods": Products manuals and guidelines.

The elementary building block of ESA2010 statistics is the institutional unit, which is defined as an elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function. This can be, inter alia, a household, a corporation or a government agency. Institutional units producing goods and services are often engaged in a combination of activities at the same time. The economy is considered as a whole but the regional level is calculated according to the regional breakdown, called NUTS 1, 2 and 3 (see this website: Eurostat overview).

A household is an institutional unit which is defined in ESA 2010, par. 2.12 ESA 2010

The regionalization of households is carried out according to indicators based on the individual's reported place of residence. Data are collected mainly through regional offices. No other adjustments are made.

Regional accounts combine data from many source statistics. Figures are obtained per capita by dividing absolute figures by the total estimated population. Following 3.5, the population of a country for regional household accounts consists of all resident statistical units. A unit is a resident unit of a country when it has a centre of predominant economic interest on the economic territory of that country, that is, when it engages for an extended period (one year or more) in economic activities on this territory. Consistently with the domestic concept, persons employed in resident units are included, regardless of age or where the person is resident. All persons engaged in a productive activity, within the production boundary of national accounts, should be covered (this includes conscripts, people living in collective households, seasonal and cross-border workers, etc). Annual population data in national accounts are obtained as an average of four quarters.

Nomenclature of Territorial Units for Statistics (NUTS clacification) NUTS has three hierarchical levels - NUTS 1, NUTS 2 and NUTS 3. NUTS 1 level represents Croatia as a whole country, at NUTS 2 level the country is divided into four cohesion regions and at NUTS 3 level the country is broken down into 21 statistical regions.

For regional household accounts, Nomenclature of Territorial Units for Statistics (NUTS) has been used with estimates at the total level (NUTS 1) and regions at NUTS 2 level.

The reference period is calendar years.

Regional GDP and GVA estimates are generally more reliable at NUTS 2 level than at NUTS 3 level. Aggregation at NUTS 2 reduces the impact of local data limitations and volatility of certain regional indicators.

Accuracy limitations are mainly related to the availability of fully territorialised source data and the suitability of indicators for specific activities.

Accuracy is also documented in the National Quality Report (NQR).

Depending on the variable values are shown in Million euro, Euro per inhabitant, Euro per inhabitant in percentage of the EU27 (from 2020) average, Million units of national currency, Million purchasing power standards (PPS, EU27 from 2020), Purchasing power standard (PPS, EU27 from 2020), per inhabitant, Purchasing power standard (PPS, EU27 from 2020), per inhabitant in percentage of the EU27 (from 2020) average, thousands of persons and thousands of hours worked, growth rates or Index 2015=100.

The primary and secondary income accounts are measured in millions of euros. Population, employment in persons and hours worked are typically expressed in thousands of their respective units (e.g. persons, hours). 

Purchasing Power Standards (PPS): It is important to note that PPP are calculated at national level only; this means that for a given country and a given year the same PPP is applied for all regions of that country.

Data sources for the calculation of GVA and GDP are the national accounts data, annual business statistics surveys, economic accounts for agriculture, annual data on persons in employment and earnings, annual data of the Croatian Institute for Pension Insurance on the number of insured persons and various other statistical data.

The calculation covers all activities following the concept of the System of National Accounts (SNA 2008) and the European System of National and Regional Accounts (ESA 2010).

Regional accounts are a subsystem of national accounts in which the Republic of Croatia, the NUTS 2 level units and counties are the main objects of observation. The concepts used in the regional accounts are the same as those used in the national accounts. GDP at market prices is the sum of values added by activities, including items at the level of the national economy that are not classified by activities, such as taxes on products less subsidies on products.

GVA and GDP for the Republic of Croatia, at NUTS 2 level and for counties are calculated by using the indirect method. The national GVA figures by activities were allocated at the NUTS 3 level by applying adequate distribution keys.

Household and employment account data by region are compiled in spreadsheets based on the data sources and concepts described under items 18.1 and 3.4, with each spreadsheet file consisting of a series of linked sheets to minimize potential errors.

Before distributing national GVA data using adequate keys, the data are calculated using indicators that are calculated using data from other departments of CBS, Financial Agency, Institute of Economics: Economic accounts for agriculture, PRODCOM survey, gross salary fund, value of construction works done, turnover in services, tourist nights spent, number of sold apartments and houses and median price of sold apartments and houses.

The main data source for compiling P51G is CBS in-house survey on fixed assets (INV-P) which converse around 60% of the total. After INV-P is processed, it is than complemented with various administrative databases in order to achieve full coverage in estimating gross fixed capital formation. More details on compilation of P51G can be found in GNI Inventory of Croatia - chapter 5.10 ACQUISITIONS LESS DISPOSALS OF PRODUCED FIXED ASSETS.

The following data sources are used for regional household accounts: main aggregates in sectoral accounts, which are broken down to regional levels using various indicators. Regional indicators are used from various administrative sources (pension insurance, data from the Croatian Employment Service, social benefits data, demographic data). For regional employment, data from administrative sources are used.

The main data source for the compensation of employees is national data for compensation of employees as well as the data from other departments of CBS.

Regional Methodology

Annually

The regional accounts tables have to be transmitted 24 months after the end of the reference year.

Compilation of regional GDP is sequentially dependent on the completion and revision of annual national GDP. Following revisions at national level, all regional allocations must be recalculated to preserve consistency across territorial levels.

This process affects the timeliness of regional GDP publication. Ongoing efforts focus on automation of allocation and validation procedures to improve efficiency.

The geographical comparability of national accounts in Member States of the EU is ensured by the application of common definitions of the European System of Accounts ESA 2010). Worldwide geographical comparison is also possible as most non-European countries apply the SNA 2008 guidelines, and SNA 2008 is consistent with ESA 2010.

Geographical comparability within Croatia is ensured by applying a single national accounts framework (ESA 2010), consistent national totals as constraints, harmonised allocation methods across all regions and uniform use of regional indicators by activity.

Differences between regions therefore reflect differences in economic structure and activity rather than methodological differences.

The sums of regional GDP data coincide with the national data published in national accounts at the time of the regional GDP release.

There are breaks in population data for periods 2001 (because of different concept of estimation) and 2012 (due possible revision of LFS data backwards). There are also breaks in employment data (both in persons and hours worked) at region level for 2020 due to planned revision of regional structures and at total level and NACEs for 2012 (due possible revisions of LFS data backwards).