IMD World Competitiveness Booklet 2023

Croatia Competitiveness Trends – Overall

OVERALL PERFORMANCE (64 countries)

BASIC FACTS

Rank

2019

2020

2021

2022

2023

Capital Land area (square km '000)

Zagreb

88 2022

46

50

7,160 2022

59

Exchange rate (per $)

60

60

3,86 2022 53 70,9 2022 54 38.952 2022 40 6,3 2022 11 10,67 2022 46 6,98 2022 48 1,84 2022 54 -2,07 2022 38 38,9 2021 52 6,76 2021 11

Population - market size (millions)

Gross Domestic Product (GDP) (US$ billions)

CHALLENGES IN 2023

GDP (PPP) per capita (US$)

• Rise in energy prices due to the war in Ukraine. • Negative demographic trends, and consequently workforce shortages in key sectors of Croatian economy, like tourism and construction, also in healthcare, crafts & services, etc. • Tax system that is not supportive of entrepreneurs: for example, introduction of windfall tax for all industry sectors, not only energy. • Educational system that is not adequate for the needs of 21st century industry. • Prerequisites for green and digital transition are still not in place.

Real GDP growth (%)

Consumer price inflation (%)

Unemployment rate (%)

Labor force (millions)

Current account balance (% of GDP)

Direct investment stocks inward ($bn)

Direct investment flows inward (% of GDP)

PROVIDED BY: National Competitiveness Council

COMPETITIVENESS LANDSCAPE

Economic Performance Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices Attitudes & Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health & Environment Education

16

22

30

39 44

41

44 47

46

46

47

49 50 47

50 49 52

58 59

60

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (41 countries)

POPULATIONS < 20 MILLION (37 countries)

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

29

31

31

33

33

33

35

37

38

38

68 Competitiveness Country Profiles