
Croatian government targets €1,600 average wage amid productivity concerns
Croatia has set a €1,600 average wage target by 2028, but economic experts warn rising labor costs and inflation could undermine long-term growth.
Croatian Prime Minister Andrej Plenković announced plans to increase average monthly salaries to €1,600 by 2028, with consultations scheduled for October to set a new minimum wage. Alongside these targets, the government outlined a €3 billion national industrial strategy running through 2034 aimed at boosting manufacturing's share of GDP and technological resilience.
However, business representatives and economists have raised concerns over the sustainability of expansion. Mislav Balković, head of the Croatian Employers' Association, emphasized that the private sector must lead future growth as labor costs outpace productivity gains. Meanwhile, former economy minister Ljubo Jurčić warned that despite 22 consecutive quarters of GDP expansion, slowing momentum and inflation leave the economy drifting "without an engine or a rudder."
Sources: HRT Vijesti, Index, Poslovni dnevnik, Vijesti.



