OECD Economic Surveys: Croatia 2023
Croatia has navigated well the COVID-19 crisis and the price shocks following Russia’s
war of aggression on Ukraine. It has achieved robust output growth, rising employment
and improving well-being, although inflation has surged. Integration into the euro-
and Schengen areas at the start of 2023 are testament to progress, and are providing
a further fillip to the economy. Ensuring that fiscal policy is counter-cyclical and
that lending supports productive investments can help contain inflationary pressures
and sustain growth. Croatia’s ongoing and ambitious reforms and investments must continue
for incomes to converge with OECD levels while also preparing for climate change.
Reducing regulatory burdens, more responsive judicial processes, addressing corruption
risks and improving the performance of state-owned enterprises can foster a more dynamic
business environment with stronger growth by higher productivity firms. A big push
to strengthen adults’ skills would ensure that employers can fill high-skilled positions
and support rising incomes. Better engaging younger adults in work, encouraging older
adults to work until the full retirement age, and attracting needed skills through
immigration would reduce poverty risks, raise productivity and help Croatia adapt
to an ageing population.
SPECIAL FEATURES: IMPROVING THE BUSINESS ENVIRONMENT; A BETTER PERFORMING LABOUR MARKET
Published on September 21, 2023Also available in: French
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