The EBRD in Croatia

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The EBRD has been investing in Croatia since 1993

In Croatia, we focus on supporting efforts to accelerate the reform process, leveraging the benefits of European Union (EU) accession to advance transition, and restructuring and commercialising public-sector enterprises.

A Croatian success story: together with the EU, we are helping to keep islands green, such as Brac in Croatia. Our loan and an InvestEU guarantee have unlocked a €35 million investment to build one of Croatia’s largest solar power plants.

Data valid as of: 28 February 2025

260

Number of projects to date

€4,972m

Cumulative EBRD investment

€4,567m

Cumulative disbursements

70%

Private sector share of portfolio

Number of active portfolio operations

€1,240m

Current portfolio of projects

€1,004m

Operating assets

11%

Equity share of portfolio

15 April 1993

Joined the EBRD

124,120

Capital subscription (€000)

EBRD Governor: Marko Primorac
EBRD Alternate Governor: Stipe Župan
EBRD Board Director: Tamás Vojnits
EBRD Board Alternate Director: Klára Król

EBRD Shareholders information

Focus areas

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 country's reform process. The EBRD will aim to enhance the impact of its investments accordingly, in addition to leveraging EU funds available to Croatia. To this end, the Bank will coordinate closely with other international financial institutions, such as the European Investment Bank and World Bank Group.

Support private-sector competitiveness by fostering innovation, operational and resource efficiency, improvements in 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 the competitiveness of the corporate sector, in particular micro, small and medium-sized enterprises (MSMEs). The Bank continues to support larger domestic corporates and small and medium-sized enterprises (SMEs) seeking to adopt modern operational and management practices, and to encourage foreign direct investments (FDI) that produces technology transfers and serves to integrate the local economy into global value chains.

Deepening financial markets to broaden access to finance with focus on capital market development

As small businesses’ access to finance remains constrained, the EBRD continues to provide long-term funding to local companies, both directly and through partner financial institutions and blend that financing with capacity building whenever possible. The Bank will continue to provide SME advisory services through its Advice for Small Businesses programme. In line with the objectives of the European Commission's Capital Markets Union initiative, the EBRD will emphasise the development of local capital markets.

Promoting the commercialisation of public companies, improving corporate governance and supporting the privatisation of state-owned companies

The EBRD is working with state and local authorities to accelerate the reform of public companies by promoting commercialisation and greater private-sector participation.

3.0%

EBRD forecast for Croatia’s real GDP growth in 2025

2.6%

EBRD forecast for Croatia's real GDP growth in 2026

The Croatian economy continued expanding at a fast pace in 2024, with real GDP growth estimated at 3.8 per cent. Real wage growth of 12 per cent supported a rebound of private consumption, while investments expanded notably, continuing the robust investment cycle that started in 2022.

Strong absorption of EU funds and acceleration of post-earthquake reconstruction have supported strong growth in construction. Household credit growth accelerated while growth in corporate loans slowed down. The growth of tourist arrivals also slowed down last year, translating into a decline in service exports in real terms, while the number of nights spent was supported by domestic tourism. Industrial output also declined in 2024, with energy production offsetting the declining production of consumer and intermediate goods in the second half of the year.

Procyclical fiscal policy further contributed to growth, with the fiscal deficit estimated at 2.1 per cent of GDP. Consequently, inflation has risen since August 2024 and reached 5 per cent in January 2025 on the back of higher process of food, energy and services. Real GDP growth is expected to remain strong at around 3 per cent in 2025, driven by robust consumption and absorption of EU funds. However, downside risks have risen amid accelerating inflation, potential further consumer boycotts, protracted eurozone weakness and escalation of trade tensions.

In 2026, Recovery and Resilience Facility (RRF) funds are again expected to support domestic demand while consumption growth is forecast to moderate, reflecting wage dynamics, resulting in output growth of 2.6 per cent.

Croatia strategy and snapshot

Croatia strategy

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Local language translation

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Croatia results snapshot

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Report on public comments

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Data valid as of: 28 February 2025

Contact the EBRD in Croatia

Head of Office: Miljan Zdrale

Address:

EBRD Zagreb Resident Office, Miramarska 23, 5th Floor, 10000 Zagreb, Croatia

Telephone:

+385 1 6000 310

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The EBRD in Croatia

A Croatian success story: together with the EU, we are helping to keep islands green, such as Brac in Croatia. Our loan and an InvestEU guarantee have unlocked a €35 million investment to build one of Croatia’s largest solar power plants.

Focus areas

Supporting efforts to accelerate the reform process

Support private-sector competitiveness by fostering innovation, operational and resource efficiency, improvements in the business climate and economic inclusion

Deepening financial markets to broaden access to finance with focus on capital market development

Promoting the commercialisation of public companies, improving corporate governance and supporting the privatisation of state-owned companies

Croatia strategy and snapshot

Contact the EBRD in Croatia

The EBRD in Croatia

A Croatian success story: together with the EU, we are helping to keep islands green, such as Brac in Croatia. Our loan and an InvestEU guarantee have unlocked a €35 million investment to build one of Croatia’s largest solar power plants.

Focus areas

Supporting efforts to accelerate the reform process

Support private-sector competitiveness by fostering innovation, operational and resource efficiency, improvements in the business climate and economic inclusion

Deepening financial markets to broaden access to finance with focus on capital market development

Promoting the commercialisation of public companies, improving corporate governance and supporting the privatisation of state-owned companies

EBRD promotes economic inclusion of Ukrainian refugees in Croatia

EBRD supports capital market development in Croatia

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