Transcript
Over the last decade, Croatia has moved closer towards OECD average living standards.
GDP growth is projected at 2.7% in 2026 and 2.4% in 2027.
Fiscal tightening would help lower inflation, rebuild fiscal buffers and prepare for future spending pressures.
Broadening tax bases, better targeting social spending and enhancing spending efficiency would ensure fiscal sustainability.
A rapidly shrinking and ageing population will weigh on growth and increase public spending.
To address Croatia’s demographic challenge:
- Tighten early retirement options and increase the retirement age
- Improve health outcomes by strengthening prevention, primary care and the quality of hospitals
- Raise the labour force participation of older workers, youth and mothers with young children
- Expand access to professional rehabilitation for people with disabilities
High demand and limited supply of residential housing challenge housing affordability.
For more affordable housing:
- Continue reforming property taxes to encourage a more efficient use of housing
- Make landlord-tenant regulation more balanced to help develop the long-term rental market
- Improve land-use policies and construction processes to better align housing supply and demand
- Expand social and affordable rental housing for vulnerable households
Greenhouse gas emissions have significantly decreased during recent decades, but more action is needed to transition to a net-zero economy.
To further reduce emissions:
- Phase out fossil fuel subsidies
- Accelerate permitting procedures and increase grid investment to boost renewable deployment
- Tighten regulations and provide loans to incentivise housing renovations
- Shift investments from road infrastructure to public transport
To learn more, read the OECD Economic Survey of Croatia 2026. oe.cd/Croatia.