June 21, 2023 – Croatia is in 50th place out of 64 countries included in the research in the global competitiveness ranking. The Institute for Business Management Development (IMD) from Lausanne carried out the research for 2023, the Croatian Employers’ Association (HUP) announced on Tuesday.
As Index writes, although this year it regressed on the global competitiveness ranking compared to last year, Croatia is still ranked ten places higher than in 2020. Last year Croatia advanced by 13 places, and this year it fell by three places. In the last few years, however, it has significantly improved its competitiveness ranking.
Global Competitiveness Ranking: Denmark First, followed by Ireland and Switzerland
Once again, Denmark takes first place, followed by Ireland and Switzerland.
Croatia was rated the best in three areas: competitiveness of foreign trade, social protection and prices.
The most significant improvements were achieved in public finances. The emphasis fell on the general government budget surplus and the country’s credit rating growth. Additionally, the growth of export of services and the growth of the share of women in management were positives.
On the other hand, Croatia has regressed on the global competitiveness ranking due to a high inflation rate, the slowdown in GDP growth and the decline in efficiency in water management.
The surveyed managers pointed out the most important features of the Croatian economy. Those included highly qualified employees, good education, quality infrastructure, and dynamic economy.
The areas in which Croatia is among the three most competitive countries in the world are also interesting. It is the best in terms of tourist consumption and employment growth. Furthermore, it ranked among the top three countries regarding GDP growth rates, labor force and minimum wage.
Bottom Three in Several Categories
On the other hand, Croatia is among the bottom three countries regarding the decline in the total population, the outflow of highly qualified workers from the economy, financial literacy, and the frequency of internships on the labor market.
In terms of tax burden, Croatia ranked 61st among the 64 countries that participated in the survey, in the category that assessed the real tax burden on citizens.
“Croatia has a highly qualified workforce and good infrastructure, giving it enormous potential for increasing competitiveness. However, for a stronger step forward, system reforms are necessary with the aim of more efficient use of Croatia’s public money and resources. HUP constantly calls for reforms that would facilitate business in Croatia and thereby accelerate the growth of GDP, wages for employees, and the standards of every citizen”, commented the acting president of the National Council for Competitiveness, Ivan Mišetić.