Boosting Croatia’s Economic Resilience
It has taken Croatia over a decade to reach the level of output it enjoyed before the 2008 crisis, highlighting the economy’s weak resilience to shocks and the poor ability of its institutions and policies to ensure a faster recovery. The recovery...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/207221592991942471/Croatia-Boosting-Croatia-s-Economic-Resilience http://hdl.handle.net/10986/34105 |
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okr-10986-341052021-05-25T09:51:00Z Boosting Croatia’s Economic Resilience World Bank ECONOMIC GROWTH ECONOMIC RESILIENCE FISCAL POLICY FISCAL TRENDS COUNTERCYCLICAL POLICY LABOR POLICY ECONOMIC REGULATION MARKET ENTRY STATE-OWNED ENTERPRISES PHARMACEUTICAL REGULATION PROFESSIONAL SERVICES BANKRUPTCY LABOR LAW BUSINESS ENVIRONMENT MARKET REGULATION CORONAVIRUS COVID-19 PANDEMIC IMPACT It has taken Croatia over a decade to reach the level of output it enjoyed before the 2008 crisis, highlighting the economy’s weak resilience to shocks and the poor ability of its institutions and policies to ensure a faster recovery. The recovery started only in 2015 but in 2020 Croatia is again facing a deep downturn due to the COVID-19 (Coronavirus) pandemic that resulted in a global economic shock of unprecedented magnitude. Country’s economic resilience is under an influence of a range of institutional, economic, and social factors. Fiscal policy, as a demand management tool, and structural policies for increasing the flexibility of factor and product markets are at the core of Croatia’s resilience agenda. While certain features of the economy make Croatia particularly exposed to external shocks, fiscal position has been improved and labor and product market institutions have been made more flexible after the global financial crisis, so Croatia is now in a better position to recover from the crisis faster. First, once economic recovery gains momentum from the COVID -19 pandemic more ambitious fiscal targets and a fully binding national fiscal framework will help to rebuild the fiscal space needed for the countercyclical response in the next downturn. Second, streamlined regulation of permanent work contracts, coupled with active labor market policies and adequate social safety nets, will reduce labor market duality and facilitate adjustment to exogenous shocks. Third, speedy recovery from shocks will be facilitated by the improved functioning of product markets, with a reduced state footprint, less restrictive regulation of entry and conduct in service sectors, and improved bankruptcy practices to favor the seamless exit of market players. Reforms in these areas will help Croatia to recover more quickly from adverse shock and prepare the country for the next recession. 2020-07-14T21:35:58Z 2020-07-14T21:35:58Z 2020-06 Report http://documents.worldbank.org/curated/en/207221592991942471/Croatia-Boosting-Croatia-s-Economic-Resilience http://hdl.handle.net/10986/34105 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling Europe and Central Asia Croatia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH ECONOMIC RESILIENCE FISCAL POLICY FISCAL TRENDS COUNTERCYCLICAL POLICY LABOR POLICY ECONOMIC REGULATION MARKET ENTRY STATE-OWNED ENTERPRISES PHARMACEUTICAL REGULATION PROFESSIONAL SERVICES BANKRUPTCY LABOR LAW BUSINESS ENVIRONMENT MARKET REGULATION CORONAVIRUS COVID-19 PANDEMIC IMPACT |
| spellingShingle |
ECONOMIC GROWTH ECONOMIC RESILIENCE FISCAL POLICY FISCAL TRENDS COUNTERCYCLICAL POLICY LABOR POLICY ECONOMIC REGULATION MARKET ENTRY STATE-OWNED ENTERPRISES PHARMACEUTICAL REGULATION PROFESSIONAL SERVICES BANKRUPTCY LABOR LAW BUSINESS ENVIRONMENT MARKET REGULATION CORONAVIRUS COVID-19 PANDEMIC IMPACT World Bank Boosting Croatia’s Economic Resilience |
| geographic_facet |
Europe and Central Asia Croatia |
| description |
It has taken Croatia over a decade to
reach the level of output it enjoyed before the 2008 crisis,
highlighting the economy’s weak resilience to shocks and the
poor ability of its institutions and policies to ensure a
faster recovery. The recovery started only in 2015 but in
2020 Croatia is again facing a deep downturn due to the
COVID-19 (Coronavirus) pandemic that resulted in a global
economic shock of unprecedented magnitude. Country’s
economic resilience is under an influence of a range of
institutional, economic, and social factors. Fiscal policy,
as a demand management tool, and structural policies for
increasing the flexibility of factor and product markets are
at the core of Croatia’s resilience agenda. While certain
features of the economy make Croatia particularly exposed to
external shocks, fiscal position has been improved and labor
and product market institutions have been made more flexible
after the global financial crisis, so Croatia is now in a
better position to recover from the crisis faster. First,
once economic recovery gains momentum from the COVID -19
pandemic more ambitious fiscal targets and a fully binding
national fiscal framework will help to rebuild the fiscal
space needed for the countercyclical response in the next
downturn. Second, streamlined regulation of permanent work
contracts, coupled with active labor market policies and
adequate social safety nets, will reduce labor market
duality and facilitate adjustment to exogenous shocks.
Third, speedy recovery from shocks will be facilitated by
the improved functioning of product markets, with a reduced
state footprint, less restrictive regulation of entry and
conduct in service sectors, and improved bankruptcy
practices to favor the seamless exit of market players.
Reforms in these areas will help Croatia to recover more
quickly from adverse shock and prepare the country for the
next recession. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Boosting Croatia’s Economic Resilience |
| title_short |
Boosting Croatia’s Economic Resilience |
| title_full |
Boosting Croatia’s Economic Resilience |
| title_fullStr |
Boosting Croatia’s Economic Resilience |
| title_full_unstemmed |
Boosting Croatia’s Economic Resilience |
| title_sort |
boosting croatia’s economic resilience |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/207221592991942471/Croatia-Boosting-Croatia-s-Economic-Resilience http://hdl.handle.net/10986/34105 |
| _version_ |
1764480100323033088 |