Croatia business news 2025

1. Economic Outlook and Growth:

• EU Funds Driving Growth: Croatia's economy is benefiting significantly from EU funds, which are fueling investment and growth.
  This trend is expected to continue in 2025.
• Focus on Productivity: While economic growth is positive, there's a focus on increasing productivity and adding value to the economy beyond just relying on EU funds.
• Tourism Sector: Tourism remains a crucial sector for Croatia's economy, and its performance in 2025 will be important to watch.
  However, there are concerns about rising prices potentially impacting competitiveness.  

2. Key Sectors to Watch:

• Construction: The construction sector is experiencing growth, driven in part by earthquake reconstruction efforts and EU-funded projects.
• Services: The service sector, including tourism, continues to be a major contributor to the economy.  
• Technology and Innovation: There's a growing focus on developing the technology and innovation sector in Croatia.  

3. Challenges and Opportunities:

• Labor Market: Croatia has seen employment growth, but there are concerns about skills gaps and the need for a skilled workforce.  
• Inflation: Inflation is a factor to consider, and how it's managed will be important for businesses.
• EU Membership Benefits: Croatia's membership in the EU provides access to the single market and EU funding opportunities, which are significant advantages for businesses.  

4. Government Policies and Reforms:

• Tax Law Changes: As you know from our previous conversation, there have been some tax law changes in 2025, including adjustments to income tax, VAT, and other areas. Businesses need to stay informed about these changes.  
• Other Reforms: Keep an eye out for any other government reforms or policy changes that could impact businesses, such as those related to labor laws, investment incentives, or regulations.

5. Sustainability and Green Initiatives:

• Environmental Focus: There's a growing emphasis on sustainability and green initiatives in Croatia, which could create opportunities for businesses in related sectors.  

Croatia Euro Currency

Croatia Inflation Rates