Manufacturing has seen an increasing role in the Croatian economy, contributing about 26% of the Croatian GDP. Important branches of manufacturing such as the wood industry, food manufacturing, shipbuilding, paper manufacturing, textiles and automotive contribute towards exports. Having a prominent economic market in this region is no easy feat due to the highly competitive and diversified industries of neighbours such as Italy and France. Croatia has made many improvements to its manufacturing sector and is presently one of the most prosperous countries of the former Yugoslavia.
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