Productivity catch-up with the average of OECD countries has slowed
Closing productivity gaps requires improving performance across all sectors
Overall productivity is weighed down by many unproductive firms
Strong business dynamism translates less well into sustainable productivity gains
Private and foreign direct investment have lagged peers
Croatia’s formal regulatory framework has improved
Regulatory burdens, in practice, are a major obstacle to investments in Croatia
Croatia has improved its regulatory framework
Resolving cases is slow and trust in courts and judges is low
Large numbers of incoming and pending cases pressure courts’ performance
Perceptions of corruption are high
Many businesses report clientelism to be a problem
Experience with corruption is common and tolerance of it is relatively high
Businesses’ use of external financing is low
Demand for finance is relatively low
Private equity markets are relatively well developed
Croatia’s financial regulations enable relative transparency but need to better address terrorist financing and money laundering risks
Croatia’s insolvency framework leaves room for improvement
The domestic stock market’s capitalisation is low
State-owned enterprises play a significant role in some sectors
Public ownership is associated with weaker financial performance
Delivery of public services could be improved, such as in waste management