
Croatia sets €1,600 wage target as economists warn of lagging productivity
Croatia targets a €1,600 average wage by 2028 alongside a €3B industrial strategy, but experts warn rising labor costs are outpacing productivity.
Croatian Prime Minister Andrej Plenković announced targets to raise the country's average net monthly wage to €1,600 by 2028, with October talks planned to revise the current €1,050 gross minimum wage. To support long-term growth, the government also presented a €3 billion industrial strategy through 2034 aimed at modernizing manufacturing.
Despite official targets, business representatives and economists expressed concern over economic sustainability. Mislav Balković, president of the Croatian Employers' Association, warned that rising labor costs are exceeding productivity gains and urged a shift toward private-sector investment. Meanwhile, former economy minister Ljubo Jurčić presented a sharper critique, arguing the economy is "drifting without an engine or a rudder" as growth decelerates and inflation dampens spending.
Sources: HRT Vijesti, Index, Poslovni dnevnik, Vijesti.


