Is Croatia's Macroeconomic Convergence Sustainable?
Commissioned by: The Institute of Economics, Zagreb
Project duration: January 1, 2024 - December 31, 2027
Project manager: Željko Lovrinčević
Collaborators: Goran Buturac, Andrea Mervar, Davor Mikulić, Marina Tkalec, Maruška Vizek
Summary:
Convergence in the context of the EU has always been considered the main mechanism for achieving socio-economic cohesion. Macroeconomic convergence was absent for a significant part of the first decade of Croatia's membership in the EU. Other new member states capitalized successfully couple of the first years of EU membership compared to Croatia. This trend has been changing in recent years thanks to the strong recovery of the Croatian economy after the global crisis caused by the COVID-19 pandemic. The question arises whether this process is only temporarily by nature under the influence of EU funds inflow during the recovery period after pandemic crisis and strong recovery of tourism industry, or is it long-term? In this context, macroeconomic convergence processes in certain areas will be analyzed. These areas are a) analysis of structural decomposition and sources of growth of the Croatian economy, b) price convergence, c) international competitiveness convergence, d) tourism as a source of accelerated economic convergence and e) price convergence on the real estate market in economy based on rents.
RESEARCH AREAS: Macroeconomics; International economics; Croatian economy
