
Croatian government sets wage and industry targets amid economic warnings
Croatia targets a €1,600 average wage by 2028 and a €3B industrial plan, though experts warn of rising labor costs and lagging productivity.
Croatian Prime Minister Andrej Plenković has announced plans to increase average net monthly salaries to €1,600 by 2028, with consultations scheduled for October to adjust minimum wage levels. To sustain economic growth, the government also introduced a €3 billion industrial strategy through 2034, focusing on manufacturing and technological development.
However, representatives from business and economic sectors warned of underlying vulnerabilities. Mislav Balković of the Croatian Employers' Association stressed that labor costs are rising faster than productivity, urging that future expansion rely on private enterprise rather than public spending. Additionally, economist Ljubo Jurčić described the economy as drifting "without an engine or a rudder," warning that persistent inflation is dampening consumer spending despite 22 consecutive quarters of growth.
Sources: HRT Vijesti, Index, Poslovni dnevnik, Vijesti.


