The Plenković government is raising pensions, demographic and housing support while keeping the deficit below 3% of GDP. Credit standing is improving, with S&P upgrading Croatia to A in 2026.
What a Korean company can do now
Government · leader
President Zoran Milanović (re-elected Jan 2025); Prime Minister Andrej Plenković (HDZ)
Key national agenda
- Deficit kept below 3% of GDP (2.8% forecast for 2027)
- EUR 10.2bn for pensions and an annual pension bonus
- EUR 804m demographic policy and housing for young families
- Digitalisation, decarbonisation, education and a new industrial strategy
- Defence, energy security and alternative supply routes
- Expected EUR 16.8bn from the EU 2028-2034 budget
Government programmes
2026 state budgetExpenditure EUR 39.8bn (budget)
Revenue EUR 35.7bn, expenditure EUR 39.8bn (+8.3%), deficit below 3% of GDP, debt edging down to 56%
Student housing expansionEUR 300m (allocation)
Student dormitories in 18 cities
Demographic policy packageEUR 804m (allocation)
Family and birth-rate support measures
Defence and energy security investmentNot disclosed
Finance Minister Primorac cited major investment in defence, energy and alternative supply routes; amount not disclosed (single source)
New industrial strategyNot disclosed
Strategy targeting future industries
Business opportunities
Student dormitory and public housing construction
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Energy storage and grid equipment supply
The government stresses energy security and alternative supply routes.
Ministry of Economy, state power utility
Manufacturing digitalisation and smart factory cooperation
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Korean support schemes
- KOTRA overseas market news and trade office support · KOTRA — Market intelligence, buyer sourcing and branch-office services via local trade offices.
- buyKOREA specialized trading company pavilion (2026) · KOTRA — Applications 3-13 Nov 2026; links firms with verified overseas buyers. Whether this country is among the 10 target markets is unconfirmed.
Official notices
- 2025-11-27 PM presented the 2026 budget bill to parliament
- 2025-12-03 2026 budget reported at EUR 35.7bn revenue and EUR 39.8bn spending
Disaster · conflict · epidemic
Stable 2026-11-07
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Earth & space
Credit rating · FX
S&P A (stable) / Moody's A3 (single source) / Fitch A- (stable) · K-SURE Unconfirmed · EUR +0.5%
Sanctions
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As an EU member state, it is not subject to any country-wide UN, US, EU, UK or Korean sanctions programme.
