In Croatia we focus on:
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Supporting efforts to accelerate the reform process: The Bank’s engagement in Croatia in the new strategy period which started in 2017-stands to gain significantly from acceleration in the pace of the reform process. Accordingly, the EBRD will aim to enhance the impact of its investments as well as leveraging available EU funds for Croatia. The Bank will also closely co-ordinate with other IFIs, including the EIB and World Bank Group.
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Support private sector competitiveness through fostering innovation, operational and resource efficiency, as well as improvement of the business climate and economic inclusion. After a prolonged recession Croatia has now returned to growth. The next challenge is to tackle structural vulnerabilities and institutional deficiencies hampering competitiveness of the corporate sector, in particular micro, small and medium enterprises (MSMEs). The Bank continues to support larger domestic corporates and small and medium enterprises seeking to adopt modern operational and management practices, and foreign direct investments (FDIs) that produce technology transfers and serve to integrate local economy into global value chains.
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Deepening financial markets to broaden access to finance with focus on capital markets developments. As small businesses’ access to finance remains constrained, the EBRD continues to provide long term funding directly to local companies and through partner financial institutions and, whenever possible, blend the financing with capacity building. The Bank will continue providing SME advisory through the Advice for Small Businesses programme. In line with the objectives of the European Commission's Capital Markets Union initiative, the Bank will put emphasis on the development of local capital markets.
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Promote commercialisation of public companies, including the improvement of corporate governance, and support the privatisation of some state-owned companies. The Bank is working with the state and local authorities to accelerate the reform of public companies through promotion of commercialisation and increased private sector participation.
- Croatia corporate productivity
- Croatia SOE performance
The EBRD’s latest strategy for Croatia was adopted on 7 June 2017
- EBRD's latest Croatia strategy
- Report on the invitation to the public to comment on the Croatia strategy
- The EBRD in Croatia: Results snapshot
EBRD forecast for Croatia's real GDP growth in 2022 6.5%
EBRD forecast for Croatia's real GDP growth in 2023 2.0%
The Croatian economy fully recovered from the pandemic in 2021 as GDP expanded by 10.2 per cent, with private consumption, exports, and investment all recording robust contributions. In the first half of 2022, GDP expanded by a still strong 7.4 per cent year-on-year, driven again by domestic demand and continued expansion of exports. Private consumption has remained robust in spite of an average 1.9 per cent decline of real wages in this period, but consumer confidence fell amid rising inflation, which reached 12.3 per cent in July 2022. In September 2022, the government announced a package of support, amounting to 4.9 per cent of 2021 GDP and focused on capping electricity prices until March 2023, tax reliefs and fuel excise tax cuts, energy subsidies to vulnerable households, and capping prices on basic foods, on top of earlier measures such as limited increases in gas and electricity tariffs and fuel price caps. With consumption and investment weakening, the tourism sector will be key in supporting growth and budget inflows in the third quarter. Tourist stays in June 2022 already exceeded those in June 2019. Croatia is relatively protected from the Russian gas import shutdown, given its majority state-owned energy sector, adequate share of renewables and access to alternatives through the Krk LNG terminal. GDP growth is expected to reach 6.5 per cent in 2022, but in 2023, weak Eurozone demand will likely contribute to a slowdown in growth to 2 per cent.
