Croatia posts 3.4% GDP rise while opposition critiques inflation‑driven budget gains

The Croatian government reported that real GDP grew 3.4% year‑on‑year in 2025, unemployment fell 14.8%, and the number of insured persons rose 2.5%. Inflation accelerated to an average 3.7%, 0.7 percentage points higher than the previous year. State revenues reached €32.6 billion, largely from VAT, while expenditures climbed to €36 billion, creating a deficit of €3.4 billion and pushing public debt to 56.3% of GDP.

Opposition parties accused the government of profiting from higher prices, questioning the effectiveness of spending on health, education and social security, and calling for tighter fiscal control. Nobel‑winning economist James A. Robinson, speaking at the Adria Business Forum in Zagreb, reiterated that Croatia still lags behind the EU average in wealth and institutional quality, and emphasized the need for long‑term reforms, while noting that the diaspora can be a valuable development resource.