ZAGREB, 27 Dec (Hina) – Croatia will enter 2025 with one of the highest economic growth rates in the European Union, a reduction in public debt, and an A-level credit rating, Prime Minister Andrej Plenković said on Friday at the government’s final session of the year.
Croatia will achieve 3.6% economic growth this year, ranking among the top performers in the EU, where the projected growth rate for the bloc is 0.9%, Plenković said.
He highlighted that over the past four years, the public debt-to-GDP ratio has dropped from 86.5% to 57.4%, meeting the Maastricht criterionВ for fiscal stability. Additionally, all three leading global credit rating agencies have awarded Croatia an A-levelВ rating, elevating it from speculative status to above-average credit quality.
Plenković also cited an active labour market with over 1.7 million insured persons and a natural unemployment rate of 4-5%, with 91,000 unemployed persons.
A testament to public confidence in the state and public finances is the fact that citizens have invested €6 billion in treasury bills and government bonds, earning over €200 million in interest, he said.
In 2025, Plenković expects 3.2% GDP growth, a 2.7% inflation rate, and a 2.9% increase in employment. The public debt-to-GDP ratio is projected to fall further to 56%.
Focus on wage growth, pensions, and affordable housing
Plenković said that in 2025, the government will prioritise further increases in wages, pensions and social benefits, as well as demographic measures and affordable housing.
He emphasised continued post-earthquake reconstruction, digital transformation, green transition, agricultural investments, balanced regional development, and judicial reform.
Investments will also target the modernisation of transportation, healthcare, social and judicial infrastructure, he said, adding that affordable housing remains a key government goal.
Significant changes are expected next year owing to amendments to the Investment Promotion Act and the State Aid for Research and Development Act. The government will also continue implementing its Administrative Burden Relief Action Plan for the business sector, reducing costs by €365 million.
Additionally, reforms will enhance the management of state-owned enterprises and establish a Central Population Registry to consolidate citizen data, ensuring fairer implementation of social policy measures.
The government will focus on demographic renewal, doubling parental benefits from €995 to €3,000, increasing newborn support from €309 to €618, and introducing other family-strengthening measures.
For retirees, a new Pension Insurance Act will bolster their status, aiming to raise the average overall pension to at least €800 by the end of the government’s term.
Investments will continue in police, military, firefighting, and all components of homeland security. Croatia is set to allocate 2% of its GDP to defence next year, with 29% of the defence budget earmarked for modernisation and equipment.
Plenković announced that the technical part of the process of Croatia’s accession to the Organisation for Economic Cooperation and Development (OECD) will conclude by the end of next year, with membership expected in summer 2026, contingent upon fulfilling obligations on time.
