In Croatia we focus on:
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.
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.
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.
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 10 May 2023
EBRD forecast for Croatia's real GDP growth in 2023 2.5%
EBRD forecast for Croatia's real GDP growth in 2024 2.3%
The Croatian economy expanded by 6.2 per cent in 2022, among the highest growth rates in the EU. Growth was driven by domestic demand, including accumulation of inventories, while net exports had no overall effect on growth. In the first two quarters of 2023, GDP grew by 2.8 per cent and 2.7 per cent year on year, respectively. While 24 private consumption accelerated in the second quarter amid declining inflation, exports recorded an annual decline in April and May 2023, mainly due to lower exports of fuels and crude materials. Industrial production also fell for six months in a row until May 2023, reflecting weak foreign demand and supply-side shocks. On a positive note, tourist nights in the first half of 2023 were 5 per cent higher than the record levels in 2019, and revenues are well up on the 2022 levels, reflecting price increases. GDP is forecast to grow by 2.5 per cent in 2023, with weak external demand and tighter financial conditions weighing on growth. Upside risks to the forecast are a stronger-than-expected tourism season, recovering domestic demand supported by a tight labour market and an EU funds-driven investment acceleration. In 2024, GDP could expand by 2.3 per cent, as domestic demand moderates while demand from key trading partners recovers.