In 2008, the impact of the global financial market crisis was felt less severely in Croatia than in other Southeastern European countries. In spite of this, the exceptionally good growth rate of the gross domestic product of 5.6 % in 2007 slowed down to 2.2 % in the year just ended. In line with the development in the international financial markets, the Croatian leasing market contracted, in particular as a result of limited liquidity combined with increasing interest rates.