Prime Minister Andrej Plenković, in the introduction to today’s Government session, referred to the latest macroeconomic indicators, primarily the revised growth rate of Croatian gross domestic product (GDP) of 3.9 percent in 2024, emphasizing that this is the second highest growth rate in the EU, and noted that GDP per capita is now at the level of Hungary.
– Last year, GDP grew by 3.9 percent; until now, this figure was 3.8 percent. This is the second highest GDP growth rate in the entire EU, right after Malta, which had the highest growth. In the last four years, Croatia has had the second highest cumulative GDP growth in the EU, at 25 percent. For comparison, the entire EU is growing at one percent, and the euro area at 0.9 percent, which means that Croatia is growing practically four times faster than the average in the EU and the euro area – emphasized Plenković.
He noted that the growth rate is important because it reflects the real standard of living and explained that, for example, if the economy grows only one percent annually, Croatia would need 70 years to double its GDP, while with a growth of 3.9 percent, the same progress is achieved in 18 years, which also means higher wages and better pensions.
He pointed out that when looking at GDP per capita, Croatia reached 77 percent of the EU average last year, placing us above Slovakia, Greece, Latvia, and Bulgaria, and we have reached the level of Hungary.
– The policy of catching up, which has been our policy for nine years, is showing results. Namely, in 2008 we were at 64 percent of development in the EU, then we fell to 62 percent in 2016, and since we took over, during our first mandate to today, we have grown by 15 percentage points – stated Plenković.
He linked this to the latest data on the growth of average wages, which in February amounted to an average of 1,416 euros, which is nominally 13.5 percent higher, and real 9.5 percent higher than a year earlier. He reminded that in 2016, when his Government took responsibility, the average wage in Croatia was 749 euros. This is a nominal increase of 89 percent and a real increase of 43 percent, he noted. He also added that employment is rising, having reached a figure of 1.71 million yesterday, with only 83 thousand unemployed, which is 300 thousand more employed since the beginning of 2016.
Regarding fuel prices, he stated that they are now lower than before the start of the war in Ukraine.
– We will continue with Government measures that will ensure affordable prices for electricity, gas, and oil derivatives. Retail fuel prices in Croatia are now among the lowest compared to neighboring countries and other EU countries. Additionally, fuel prices are now lower than before the start of the Russian aggression against Ukraine, which is a significant shift for our citizens and their regular expenses – concluded Plenković.
