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 1.5%
EBRD forecast for Croatia's real GDP growth in 2024 2.3%
GDP growth in 2022 in Croatia was the highest among EU economies in the EBRD regions, at 6.3 per cent, propelled by robust consumption and investment expenditures. Following the Euro area accession in January 2023, investor sentiment has improved and Croatia has not experienced any significant price increase shocks directly related to the switchover from Kuna to Euro.
Nevertheless, HICP inflation was still in double digits as of March 2023, at 10.5 per cent year-on- year. In light of the weaker global economic environment, a substantial growth slowdown is expected in 2023, to 1.5 per cent, followed by a gradual recovery in 2024, to 2.3 per cent. The disbursements to date of funds under the EU’s Recovery and Resilience Facility (RRF) has been impressive in Croatia and, together with the cohesion funds, the RRF will substantially boost investment in the coming years, especially in the public sector which finances more than 70 per cent of investment from EU sources.