Croatia: Productivity identified as key economic priority for next decade

Croatian Deputy Prime Minister and Minister of Finance Tomislav Ćorić stated that increasing economic productivity must be the primary focus for the Croatian economy over the next decade. Speaking at the 'Croatia as We Need It - Productivity as a Prerequisite for Growth' conference, Ćorić noted that current indicators suggest inflation will be significantly lower than the previously predicted 4.9 percent, with economic growth expected to exceed 2 percent.

Ćorić highlighted that 84 percent of this year's state budget is fixed, which is higher than the EU average of 75 to 78 percent. He warned that without significant productivity growth, this fixed portion could increase, forcing the government to fund one interest group by reducing the rights of another. He called for continuous dialogue between the government and the business community to facilitate economic progress.

During the panel discussion, Martina Dalić, Chairwoman of Podravka, noted that the effects of previous wage increases have largely been exhausted. She cited uncertainty due to regional conflicts and emphasized the need for a fair tax system and more efficient tax collection.