Madzarevic-Sujster, Sanja2014-02-122014-02-122013-02https://hdl.handle.net/10986/17037Croatia`s current economic challenges include sluggish growth, excessive public spending, high unemployment, and a deteriorating external environment. Croatian economy was making a fragile recovery and dealing with slow export growth, low investment, and persistent unemployment. At the end of 2011, Croatia gross domestic product (GDP) per capita (in purchasing power terms) declined to 61 percent average, a loss of 2 percentage points since 2008.The country incomplete structural reform agenda needs attention and action to promote greater competitiveness and a shift to productivity-based, private sector-led growth. It also faces the strategic challenge of maximizing the benefits of European Union (EU) membership, especially in terms of access to markets and the use of EU structural funds, requiring structural changes in the social sectors, education system, and business environment. Accelerating economic recovery requires Croatia to complete its currently unfinished structural reform agenda and shift to productivity-based, private sector-led growth. The government could also do more to: (i) reform product market regulation; (ii) remove administrative barriers to investments; (iii) reduce the logistics costs in trade; (iv) make the bankruptcy process more efficient; and (v) modernize contract enforcement and property rights.en-USCC BY 3.0 IGOACCESS TO FINANCINGADMINISTRATIVE BARRIERSAGGREGATE DEMANDBALANCE SHEETBALANCE SHEETSBANKRUPTCYBANKRUPTCY PROCESSBARRIERS TO INVESTMENTSBORROWING REQUIREMENTSBROAD MONEYBUDGET CONSTRAINTSBUSINESS CLIMATEBUSINESS CYCLEBUSINESS ENVIRONMENTCAPITAL INFLOWSCLIMATE CHANGECONSUMER PRICECONSUMER PRICE INDEXCONTINGENT LIABILITIESCONTRACT ENFORCEMENTCREDIT DEFAULTCREDIT DEFAULT SWAPSCREDIT RATINGCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITSDEBTDEBT CRISISDEBT OVERHANGECONOMIC CONSEQUENCESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC RECOVERYECONOMIES OF SCALEEMERGING MARKETSEMISSIONSENABLING ENVIRONMENTENERGY CONSUMPTIONENERGY EFFICIENCYENERGY INTENSITYENTERPRISE RESTRUCTURINGENTITLEMENTSENVIRONMENTALEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT MARKETSEXPOSUREEXTERNAL DEBTFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL PERFORMANCEFINANCIAL PROBLEMSFINANCIAL RESOURCESFINANCIAL SHOCKSFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POLICYFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFUTURE GROWTHGOVERNMENT DEFICITGOVERNMENT FINANCEGOVERNMENT GUARANTEESGOVERNMENT POLICIESGOVERNMENT SUBSIDIESHIGH DEBTHIGH UNEMPLOYMENTINCOMEINCOME LEVELINFORMAL ECONOMYINVESTMENT CLIMATEJOB CREATIONJOBSLABOR FORCELABOR MARKETMACROECONOMIC STABILITYMARKET CONFIDENCEMARKET DEMANDMARKET REFORMSMARKET REGULATIONNATIONAL ACCOUNTSNATIONAL DEFICITOLD DEBTPAST DEBTPENSIONPENSION REFORMSPENSIONSPER CAPITA INCOMEPOLICY RESPONSESPOLITICAL STABILITYPRIVATE CONSUMPTIONPRIVATE SECTOR CREDITPROPERTY RIGHTSPUBLIC DEBTPUBLIC SPENDINGPURCHASING POWERREAL ESTATEREAL GROWTH RATESRED TAPEREFORM PROGRAMRENEWABLE ENERGYRULE OF LAWSAFETY NETSAVINGSSOCIAL PROTECTIONSOCIAL SAFETY NETSOVEREIGN DEBTTAXTAX BURDENTREATYUNCERTAINTIESUNEMPLOYMENT RATEWORLD FINANCIAL MARKETS10.1596/17037