The balance of goods and services is an integral part of the current account of the balance of payments. It records revenues and expenditures generated by the exchange of goods and services with foreign countries. The balance of goods includes the exchange of general goods, net exports in the resale of goods, and the exchange of non-monetary gold. The balance of services of the Republic of Croatia presents the services of processing goods owned by others, repair and maintenance services, transport services, travel services, i.e. tourism, and other services separately. When the economy imports more goods and services than it exports, the balance of goods and services is in deficit. Consequently, if the value of imports of goods and services is exceeded by the value of exports, it results in a surplus of the balance of goods and services. The balance of goods and services has a significant impact on the macroeconomic aggregates of the economy. The results of the analysis show the variable contribution of the foreign trade sector to GDP growth in the observed period. The research part of the paper aims to analyze the movement of individual components of the balance of goods and services in the period from 2014 to 2018. The balance of goods and services of the Republic of Croatia is marked by a long-term deficit on goods due to faster growth of imports than exports and surplus on service account based on the revenues generated by the exchange of tourism services. The observed five-year period was dominated by exports of goods from the processing industry sector. The most important foreign trade partners of the Republic of Croatia are mostly EU countries. The results of the paper indicate the need for certain changes, mainly concerning the structure of the exports of goods and services of the Republic of Croatia.