Consumption and exports have lifted GDP growth, while investment has lagged
Croatia’s energy support measures are substantial and are largely price subsidies
European markets, tourism services and manufactures account for most exports
Inflation is abating from the recent surge, although price pressures have broadened
The banking sector’s health appears solid
Fiscal policy remains supportive while monetary conditions are tightening
Rising prices and growth have reduced the public debt ratio
Modest primary surpluses and stronger growth through continued reforms will reduce the debt ratio to below 60%
Overall spending is near OECD countries, although the public payroll is high
Public investment is highly reliant on European funds
Croatia’s Recovery and Resilience Plan is substantial
Overall public service numbers are above most OECD countries, but some wage rates are lagging
Tax revenues are moderate, and are weighed towards indirect taxes
Despite recent progress, informality remains significant in Croatia
Achieving emission reduction goals will require large cuts in emissions intensity
Reducing emissions from energy use is key
Heavy use of an ageing car fleet contributes to high transport emissions
Renewable energy sources already supply an important share of Croatia’s energy
Improving waste collections and recycling would reduce emissions
Damages from climate-related events have been modest but are likely to increase