{
  "title": "Economic Growth in Croatia: Potential and Constraints",
  "publication": "IMF Working Papers, August 1, 2007",
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  "summary": "This paper examines the factors and constraints that affect recent and potential growth in Croatia, as well as policies that can influence it. On current productivity trends, it estimates Croatia's potential growth rate at 4-4½ percent, a result reasonably robust to different methodologies.",
  "sections": [
    {
      "heading": "Major findings",
      "content": "- Estimates Croatia's potential growth rate at 4-4½ percent on current productivity trends; this result is described as reasonably robust to different methodologies.\n- Recent and potential growth are affected by a set of factors and constraints examined in the paper, including the business environment, foreign direct investment, and the role of the state in the economy.\n- Emphasis on the need to attract more greenfield foreign direct investment to strengthen the export base and support higher growth.\n- Identifies administrative burden, legal uncertainties, and corruption as critical impediments to business activity and productivity growth.\n- Highlights the importance of reducing the role of the state in the economy to support higher growth outcomes."
    },
    {
      "heading": "Policy recommendations and reform priorities",
      "content": "- Improve the business environment through further measures to reduce:\n  - administrative burden\n  - legal uncertainties\n  - corruption\n- Attract more greenfield foreign direct investment.\n- Implement reforms to reduce the role of the state in the economy through:\n  - fiscal consolidation\n  - faster privatization"
    },
    {
      "heading": "Thematic coverage and keywords",
      "content": "- Subject areas: Balance of payments; Business environment; Economic sectors; Foreign direct investment; Labor; Macrostructural analysis; Production; Structural reforms; Total factor productivity\n- Keywords: Business environment; Croatia's rank; EBRD indices; economic growth in Croatia; Europe; export base; Foreign direct investment; innovation in Croatia; reform progress; Structural reforms; Total factor productivity; transition rank; WP\n\nSource: IMF Working Paper \"Economic Growth in Croatia: Potential and Constraints\" by David Moore and Athanasios Vamvakidis, August 1, 2007.\n\n---\n\n Content in this bundle\n\n- 1.   Croatia: Potential Real GDP Growth\n  - 1.   Croatia: Potential Real GDP Growth (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1.   Croatia: Potential Real GDP Growth (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237/index.md)",
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    "Authors: David Moore, Athanasios Vamvakidis",
    "Published: August 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867626.001",
    "Estimates Croatia's potential growth rate at 4-4½ percent on current productivity trends; this result is described as reasonably robust to different methodologies.",
    "Recent and potential growth are affected by a set of factors and constraints examined in the paper, including the business environment, foreign direct investment, and the role of the state in the economy.",
    "Emphasis on the need to attract more greenfield foreign direct investment to strengthen the export base and support higher growth.",
    "Identifies administrative burden, legal uncertainties, and corruption as critical impediments to business activity and productivity growth.",
    "Highlights the importance of reducing the role of the state in the economy to support higher growth outcomes.",
    "Improve the business environment through further measures to reduce:",
    "Attract more greenfield foreign direct investment.",
    "Implement reforms to reduce the role of the state in the economy through:",
    "Subject areas: Balance of payments; Business environment; Economic sectors; Foreign direct investment; Labor; Macrostructural analysis; Production; Structural reforms; Total factor productivity",
    "Keywords: Business environment; Croatia's rank; EBRD indices; economic growth in Croatia; Europe; export base; Foreign direct investment; innovation in Croatia; reform progress; Structural reforms; Total factor productivity; transition rank; WP",
    "**1.   Croatia: Potential Real GDP Growth**"
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