The main aim of this research was to analyse the impact of currency devaluation on GDP growth & inflation in Croatia, including the factors that can boost economic growth or inflation. An analysis of the devaluation impact on GDP growth per capita has also been tested as GDP per capita is an indicator of economic standard. Empirical results of multiple linear regression have been shown as uncertain. Namely, all the regressor variables were not statistically significant, although they match linear regression criteria. Same problem is with auxiliary hypothesis. According to the auxiliary hypothesis results, devaluation could also stimulate inflation growth. Problem of this study is that there are many factors that may boost economic growth or inflation. Therefore it is necessary to adjust the type of statistical analysis with the data collected. It is questionable how long central bank should devalue its currency in order to stimulate economic growth, while not disturbing its main policy, the price stability. Auxiliary hypothesis shows that stronger devaluation may cause inflation in couple of years. It is therefore necessary to emphasize that price stability is the fundamental goal of the Croatian central bank and that is why the governor and vice-governors are sceptical about the devaluation of local currency.