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Croatia continues to suffer from recession - its economy has not grown since 2008, contracting in 2012 by 2% and in 2013 by 1%. Access to finance for businesses, especially SMEs, remains constrained. FDI has fallen by 75% from 2008 levels. Exports were also hard hit, especially given that the EU is the destination for 63% of Croatia's exports.
On the other hand, Croatia's accession to the EU has been a major driver of reform. A number of reforms have aimed at improving the business environment, including the introduction of simplified schemes of company registration, major reforms to the judiciary, as well the formation of a Working Group whose aim is the removal of administrative barriers towards investment. Policy strategies are being developed, such as the National Innovation Strategy outlining 12 industrial sectors that are to become innovation priorities.
Competitiveness is still hindered by a number of factors, such as low innovation expenditure and a weak innovation infrastructure, constrained access to finance, an inefficient public administration and high levels of business corruption. One positive area is sustainability. Croatia is more energy efficient than the EU average. The use of renewable energy is high, mainly thanks to the use of hydroelectric power, and Croatia has adopted an ambitious target of increasing its electricity generation from renewable sources to 35% by 2020. European Union
Related News in English
Povezane vesti na srpskom
Συναφείς Ειδήσεις στα Ελληνικά