
Croatia targets wage growth amid productivity warnings from experts
Croatia sets ambitious wage and industry targets, but business leaders and economists warn that lagging productivity poses risks to long-term growth.
Croatian Prime Minister Andrej Plenković announced targets to raise the country's average net monthly salary to €1,600 by 2028, backed by a €3 billion industrial strategy through 2034. However, business leaders and economic experts warn that sustainable expansion faces significant hurdles despite 22 consecutive quarters of GDP growth.
Mislav Balković, president of the Croatian Employers' Association, emphasized that rising labor costs are currently outpacing productivity gains, urging that the real sector must lead future development. Meanwhile, former economy minister Ljubo Jurčić offered a sharper critique, describing the national economy as drifting "without an engine and without a rudder." Jurčić argued that annual GDP growth must exceed five percent to secure long-term stability as domestic demand softens.
Sources: HRT Vijesti, Index, Poslovni dnevnik, Vijesti.



