Croatia closed 2025 with strong economic performance in tourism, efforts to modernise infrastructure and heightened focus on defence, even as price pressures and EU demands for climate action weighed on public debate.
Croatia reported a record number of tourist arrivals in 2025, with 15.5 million visitors and nearly 79.2 million overnight stays by August, a slight increase from the same period in 2024, reflecting the sector’s enduring strength in the economy. Tourism officials said higher tourist spending contributed significantly to growth this year.
Despite the strong tourism figures, Croatia faced one of the higher inflation rates in the eurozone. Official data showed inflation near the euro area’s upper levels, driven by rising prices in services, food and energy, complicating household budgets and stoking calls for policy responses.
On energy and climate policy, the European Commission pressed Croatia to transpose EU energy efficiency and renewables directives into national law or face potential sanctions, as Brussels seeks stricter implementation of the bloc’s 2030 climate goals.
Defence emerged as a key priority amid broader European security concerns linked to the war in Ukraine. Parliament voted to reintroduce mandatory military conscription after 17 years, a move framed as strengthening national resilience and crisis readiness. In December, Croatia also signed a contract to purchase 44 German Leopard 2A8 tanks using EU‑backed loans under the bloc’s Security Action for Europe (SAFE) programme, signalling a significant investment in modernising its armed forces.
Infrastructure investment remained central to government policy. Plans were unveiled for a €6 billion rail modernisation programme aimed at improving regional connectivity and sustainability, as Croatia seeks to shift transport patterns and support economic development.
Demographic and labour market challenges continue to shape economic planning. A World Bank‑backed analysis highlighted a shrinking, ageing population and skills shortages as key constraints for future growth, prompting reforms to vocational training and labour programs.
Croatia’s political leadership also emphasised its deepening integration within the European Union. Prime Minister Andrej Plenković said the country’s growing economy will see its annual contribution to the EU budget rise to about €1.5 billion in the next multiannual financial framework, reflecting improved fiscal capacity.
Cultural diplomacy and sporting success marked the year as well. Zagreb hosted the 2025 World Wrestling Championships, bringing international attention and competitors from dozens of countries.
As 2026 approaches, Croatia aims to balance economic growth with social concerns over cost of living, implement EU‑linked climate and energy reforms, and sustain investment in defence and transport infrastructure that underpins its strategic ambitions within the EU and NATO.