[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108471-en":3,"doc-seo-108471-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},108471,4398048950312,"Violet","https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908",8,"Research & Report","Croatia Country Economic Memorandum - Laying the Foundations - Boosting Productivity to Ensure Future Prosperity","Croatia has advanced living standards over the past two decades, reaching about 70% of the EU27 average GDP per capita level in 2021, supported by stronger business conditions, institutional quality, market liberalization, and macroeconomic stability. Yet long-term progress depends critically on productivity improvements, since limited gains and population ageing constrain growth to around 1.6% annually in 2025–50. A comprehensive reform agenda could raise per capita growth to about 3% by improving education, labor participation, and productivity, with guidance focused on service sectors and public policy institutions.","[Source: stock.adobe.com / Photo by: Stefanphotoart / Zagreb / 497932880](Source: stock.adobe.com / Photo by: Stefanphotoart / Zagreb / 497932880Public Disclosure Authorized)[Public Disclosure Authorized](Source: stock.adobe.com / Photo by: Stefanphotoart / Zagreb / 497932880Public Disclosure Authorized) Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized  \nOverview  \nCroatia  \nCountry Economic Memorandum  \nLaying the foundations: Boosting productivity to ensure future prosperity  \n© 2022 The International Bank for Reconstruction and Development The World Bank 1818 H Street NW Washington, D.C. 20433 [Internet: www.worldbank.org](Internet: www.worldbank.org)  \nThis work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent.  \nThe World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.  \nRights and Permissions  \nThe material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.  \nAny queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; email: [pubrights@worldbank.org](pubrights@worldbank.org).  \nCover design, interior design and typesetting: Q-concept d.o.o. and designer Nikolina Ćuk, [mag.ing.des](mag.ing.des)., [qconcept.hr](qconcept.hr)  \nI  \nCroatia CEM 2022-Overview  \nLaying the Foundations: Boosting Productivity to Ensure Future Prosperity in Croatia  \nOverview1  \nIntroduction  \nCroatia has made significant progress in living standards over the last two decades, with Gross Domestic Product (GDP) per capita (in Purchasing Power Parity nominal terms) reaching 70 percent of the average EU27 level in 2021, from 50 percent in 2001. During this period, the country has improved its resilience by achieving advancements in the business environment and institutional quality, liberalizing labor and product markets and maintaining macroeconomic and financial stability. By entering the EU in 2013 and the euro area and Schengen zone in 2023, Croatia has achieved its key objective of Euro-Atlantic integration and gained access to abundant EU resources and a safety net for its financial system.  \nFurther improvements in living standards of Croatians would be critically dependent on productivity improvements. Headwinds to long-term growth arising from limited improvements in productivity and an ageing population would limit Croatia’s GDP per capita growth to 1.6 percent a year over 2025-50. Croatia’s productivity is lagging not only the developed EU countries, but also its regional peers. This reflects low levels of Research & Development (R&D) investments, innovation and technology adoption, weaknesses in managerial and organizational practices, and constraints on competition. In addition, while institutions have improved, some lingering issues remain.  \nAn ambitious and comprehensive set of reforms could almost double Croatia’s GDP per capita growth from 1.6 percent to 3 percent a year over 2025-50 period. This would imply that Croatia’s per capita income could exceed the EU27 average by the end of the period. While tackling constraints, particularly firms’ productivity, requires significant efforts by both the private and the public sector, the goal of this overview and the detailed report is to focus on a subset of t","cbCaigoewSMVQ7bC","https://ap.wps.com/l/cbCaigoewSMVQ7bC","pdf",795485,5,1,15,"English","en",105,"# Overview\n## Introduction\n## Croatia’s solid growth after 2015 and key disruptions","[{\"question\":\"Why is productivity central to Croatia’s future prosperity?\",\"answer\":\"Because long-term growth is constrained by limited productivity improvements and an ageing population, which keep GDP per capita growth low without productivity gains.\"},{\"question\":\"What role did EU integration play in Croatia’s progress?\",\"answer\":\"EU accession in 2013 and euro area/Schengen entry in 2023 supported Euro-Atlantic integration and improved access to EU resources and financial system safety nets.\"},{\"question\":\"What reforms could improve Croatia’s growth outlook by 2025–50?\",\"answer\":\"Ambitious, comprehensive reforms—especially those improving firms’ productivity through measures in education, labor market participation, and productivity—could nearly double GDP per capita growth from about 1.6% to around 3% annually.\"}]","Croatia Country Economic Memorandum - 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