The Organisation for Economic Co-operation and Development, or OECD, published its Economic Survey of Croatia, projecting GDP growth of 2.7% in 2026 and 2.4% in 2027 as domestic demand moderates, with headline inflation easing to 3.3% on average in 2026 and 2.5% in 2027. The Survey argues that sustaining strong and resilient growth will require rebuilding fiscal buffers and preparing for rapid population ageing through reforms in pensions, labour markets and health care, alongside measures to address housing constraints and support the transition to a net-zero emissions economy. To strengthen fiscal sustainability, the OECD points to the need for tighter fiscal policy, including phasing out untargeted cost-of-living support, improving public spending efficiency, broadening tax bases, and better targeting social benefits, supported by stronger capacity to conduct comprehensive spending reviews; it also calls for continued divestment of state-owned firms and governance improvements to raise performance and service quality. On ageing, it recommends tightening early retirement options and raising the retirement age, complemented by prevention and higher-quality primary and hospital care to improve health outcomes and extend working lives; labour supply measures include strengthening work-based learning, expanding early intervention and professional rehabilitation for persons with disabilities, and improving access to affordable, high-quality early childhood education and care. For housing, the Survey highlights vacancies and short-term holiday rentals as constraints on residential supply and affordability, and proposes shifting from an area-based to a value-based recurrent property tax, introducing more balanced tenant-landlord regulations to develop the private rental market, and improving land-use and administrative procedures; for net-zero, it prioritises faster permitting and grid investment for solar and wind deployment and a housing renovation package that includes phasing out residential fossil-fuel subsidies and targeting financial support to households most in need.
OECD 2026-01-30
Organisation for Economic Co-operation and Development Economic Survey of Croatia projects 2.7% GDP growth in 2026 and urges tighter fiscal policy and pension reform
The Organisation for Economic Co-operation and Development (OECD) published its Economic Survey of Croatia, forecasting GDP growth of 2.7% in 2026 and 2.4% in 2027, with inflation easing to 3.3% and 2.5% respectively. The Survey emphasizes the need for fiscal reforms, pension and healthcare adjustments, housing market improvements, and measures to support a net-zero emissions transition to sustain growth and address demographic challenges.