Professor Palić discusses the Croatian economy, wages and consumer spending with Bloomberg Adria

Associate Professor Petra Palić, PhD, from the Catholic University of Croatia appeared on Bloomberg Adria’s Zoom In programme, where she discussed current economic trends in Croatia, wage growth, slowing consumer spending and opportunities for further economic development.

Despite rising real wages and employment, consumer spending in Croatia has slowed significantly. Professor Palić explained how inflation, rising living costs and uncertainty influence people’s spending decisions, making households more cautious and more inclined to save. She particularly emphasised the importance of distinguishing between average and median wages, as average earnings do not necessarily reflect the purchasing power of most citizens.

Discussing the future of the Croatian economy, she highlighted the need for stronger private investment, increased productivity and more competitive exports. She also addressed the gradual decline in investment stimulus from European funds and the importance of creating a favourable environment for new investment.

“We need to become more competitive in exports, and we can only achieve this through higher productivity and greater domestic added value in our products,” Professor Palić emphasised.

The programme also featured economic analyst Predrag Bejaković from Zagreb University of Applied Sciences, while the discussion was hosted by journalist Ivan Vrdoljak.