Republic of Croatia: Staff Concluding Statement of the 2017 Article IV Mission

The economic recovery continues into the third year, helped by improved macroeconomic policies. However, real incomes are still well below the EU average and their catch up has suffered a major setback during the recession period.

 

Supporting faster income convergence to average EU income levels will require growth-friendly fiscal and productivity-enhancing structural reforms. In this regard, it is critical to further reform and modernize the public sector, notably health care, education and training, as well as the legal process.

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