Croatia overview

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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 7 June 2017

Croatia's policy response to the coronavirus crisis

The EBRD is monitoring Croatia's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

EBRD forecast for Croatia's real GDP growth in 2021 8.0%

EBRD forecast for Croatia's real GDP growth in 2022 4.2%

The Covid-19 pandemic inflicted significant damage on the Croatian economy in 2020, as GDP declined by 8 per cent, with private consumption, net exports and investment recording negative contributions to growth.
 
In spite of a 0.2 per cent decline quarter-on-quarter in the second quarter of 2021, the GDP recovery in the first half of 2021 has been broad-based, reaching 7.5 per cent growth year-on-year. A highlight was the performance of goods exports, which were 21 per cent higher in the second quarter of 2021 than in the second quarter of 2019 after a marginal decline in 2020, signalling improved trade integration with EU markets.
 
Domestic demand was resilient as well, as both consumption and investment rebounded by 18 per cent year-on-year in the second quarter, although the latter declined in quarterly terms. Tourism, which normally accounts for around 20 per cent of GDP, has also recovered above expectations during the summer of 2021.
 
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