Recommendations for Improving the Business Climate and Encouraging Investment Growth in Croatia

Recommendations for Improving the Business Climate and Encouraging Investment Growth in Croatia

The paper by AmCham Croatia argues that Croatia has strong potential to attract foreign direct investment (FDI) and achieve sustainable growth, but this requires a package of structural reforms and stable, predictable policies.

It highlights major obstacles: macroeconomic imbalances, complex and slow administration, legal uncertainty, a mismatch between education and labor-market needs, and frequent tax changes. It proposes a national FDI strategy (with emphasis on greenfield/brownfield projects), more efficient public services and courts, “better regulation,” broad digitalization and support for the IT sector, improved use of EU funds, modernization of labor-market rules, and tax relief. In public procurement it calls for alignment with EU practice and use of the most economically advantageous tender; in healthcare for opening the insurance market, smarter spending, and faster access to innovative technologies. In energy it advocates efficiency, renewables, and e-mobility. The goal is a more competitive business environment that boosts exports, employment, and long-term GDP growth.

Key recommendations (EN):

  • Establish a long-term FDI attraction strategy and upgrade incentives.
  • Simplify and digitize administration; apply zero tolerance for corruption.
  • Strengthen legal certainty and IP protection; promote ADR (arbitration/mediation).
  • Apply “better regulation” and stabilize the tax system while easing the burden on labor and capital.
  • Align education and labor policy with the needs of tourism and IT; expand STEM capacity.
  • In public procurement, use MEAT criteria and standardize practices.
  • In healthcare, open the insurance market and accelerate access to innovation.
  • In energy, scale up renewables, efficiency, and e-mobility; make better use of EU funds.