
Croatia sets €1,600 wage target as economists raise productivity concerns
Croatian Prime Minister Plenković announced targets to raise average wages to €1,600 by 2028, even as business leaders warn of lagging productivity.
Croatian Prime Minister Andrej Plenković announced an ambitious target to raise the country's average net monthly wage to €1,600 by the end of his term in 2028, alongside upcoming consultations to adjust the minimum wage. To sustain economic expansion, the government also outlined a €3 billion industrial strategy running through 2034 aimed at modernizing manufacturing.
However, business leaders and economic experts have urged caution regarding the sustainability of this trajectory. Mislav Balković, president of the Croatian Employers' Association, emphasized that the private sector must drive growth, warning that rising labor costs continue to outpace productivity gains. Meanwhile, former economy minister Ljubo Jurčić offered a sharper critique, arguing the economy is "drifting without an engine or a rudder" as growth decelerates and inflation dampens consumer purchasing power.
Sources: HRT Vijesti, Index, Poslovni dnevnik, Vijesti.


