Croats See the Stock Market as Gambling While Inflation Eats Away Their Bank Savings

The financial literacy of Croatian citizens does not lag behind the average of developed Western countries, but still, the majority view the capital market as gambling. An analysis by the Croatian National Bank (HNB) and the Croatian Financial Services Supervisory Agency (Hanfa) shows that, compared to the countries of the Organisation for Economic Co-operation and Development (OECD), Croatia’s average financial literacy is at a relatively good level.

Namely, Croatia stands at 62 percent financial literacy, while the OECD average is 63 percent. This data was highlighted by Vesna Tomljenović, director for Croatia and head of the Zagreb branch of Raiffeisen Capital Management, at a press briefing where this Austrian investment company was introduced to the domestic public.

Most Prefer Real Estate

– When viewed by individual segments, Croatian citizens are above average in knowledge. However, behavior and attitudes are still slightly below average, which actually indicates that everything we know is still not being utilized – said Tomljenović. Despite satisfactory financial literacy, Croats still prefer real estate the most, while the rest of their money is kept in a current account or possibly in some bank deposit.

All of this is the result of several shortcomings listed by Tomljenović. First, there is still a significant fear of the capital market among citizens. Many equate investing in stocks with gambling and do not distinguish speculation from long-term investment – said Tomljenović. Additionally, the study showed that citizens do not differentiate speculative investments from structured investments. They do not think enough about inflation and the fact that money, when ‘unemployed’, loses value every day.

Few people know that in Croatia, returns from stocks or funds are completely tax-exempt after two years of holding. – This is a significant advantage compared to other forms of retirement savings. However, people often invest in what their neighbor succeeded in ten years ago, most often in a seaside apartment, neglecting maintenance costs and new investment trends – concludes Tomljenović.

Investment Giant

Raiffeisen Capital Management has been present in the Croatian market since November last year through its own subsidiary, the former Raiffeisen Invest. It is a giant with assets under management of 46.7 billion euros. For illustration, the total assets of all investment funds in Croatia amount to 4.2 billion euros. Moreover, this Austrian company is among the leaders in the field of sustainable or ESG investments. Raiffeisen Capital Management has recorded particularly strong growth in the segment of institutional clients, while its business with small investors has also continued to trend upwards. In the markets of Central and Eastern Europe, a record result was achieved in 2025.

CEO Hannes Cizek stated that the company’s investment focus has been directed towards infrastructure, high-tech sectors, artificial intelligence, renewable energy sources, and equity strategies focused on dividends and income-focused funds. – This trend confirms that investment funds perform well even in challenging market conditions and are a sought-after investment product. Current events in Iran further demonstrate the resilience of such investments to geopolitical crises – stated Cizek.

Reflecting on current events in the stock markets, Cizek said that the fundamental scenario for the markets currently assumes limited regional escalation without long-term disruptions to global supply chains. – Accordingly, capital markets are currently reacting relatively calmly, with occasional risk premiums, especially in the energy sector. However, the prolongation or escalation of conflicts poses a risk that should not be underestimated. Further significant increases in oil prices could additionally intensify inflationary pressures and limit the room for action for central banks. Stock markets are currently showing surprising resilience, while bond markets react significantly more sensitively to daily political changes – stated Cizek.

AI Bubble Carries Potential for Disappointment

Experts also highlight additional risks such as concentration and valuation risk (AI bubble), renewed inflation growth, and a weak labor market. As Cizek stated, ‘high valuations, especially in the artificial intelligence sector, carry the potential for disappointment’. – In such an environment, thematic allocation, regional differentiation, and conscious diversification become even more important. Artificial intelligence, emerging markets, infrastructure investments, and potential European recovery are key pillars of the capital market strategy for 2026 – concluded Cizek.

The fund industry is undergoing a transformation to respond to new trends in the economy. In this transformation, one area of investment stands out as particularly interesting, namely infrastructure. Stefan Grünwald, head of the Future Transformation Themes Department at the Sustainability Office of Raiffeisen Capital Management, stated that in an environment of higher interest rates and the need for public investments, strategic investments are crucial for the long-term stability of the economy.

Global investment needs are significant – especially in Europe and the USA – but the level of investment does not match these needs, which is why it is estimated that the financing gap will reach around 15 trillion US dollars by 2040. In addition to new projects, the emphasis is also on the renovation of existing infrastructure. – In conditions of a limited budget, the issue of financing is of crucial importance. It is necessary to clearly define the roles of the state and the private sector in financing and implementing infrastructure projects. Long-term guidelines from the state are necessary to ensure stable and sustainable development – emphasized Stefan Grünwald.