Financial analyst Hrvoje Japuncic was a guest on N1's studio live, where he spoke about inflation.

Japuncic noted that incomes in Croatia have risen since the introduction of the euro. “However, our economic strength remains at a relatively low level compared to the EU member countries as a whole,” he explained.

On the one hand, the Eurobarometer reports that 81% of Croatians are satisfied. On the other hand, data from the Economic Institute and the Croatian National Bank (HNB) show that over 50% of citizens are struggling with financial difficulties. Japuncic said that he and his colleagues conducting the analysis tend to trust the HNB data.

Rising prices driven by greed

“When we look at the numbers, many indicators are positive, but when we look at their scope, we lack the critical mass of the population needed to reach that level,” he said. The economic significance is mainly reflected in the middle class,” explained the financial analyst.

“I think we are seeing prices for many products rise disproportionately,” said Japuncic, agreeing with the host Nina Kljenak that this is driven by greed.

With regard to the pension system, Japuncic pointed out its “quite difficult state.”

“We have an insufficient number of employees compared to pensioners. I am in favour of strengthening both the second and third pension pillars. Croatia needs to make a significant leap forward,” said Japuncic.

A reduction in income costs for employers and the public sector would enable higher salaries

“Measures that could be implemented today include significant incentives, especially for the third pillar. The liberalisation of the second pillar should be accelerated and we should return to the basis of the whole thing – increasing the number of employees,” he added.

Meanwhile, the government boasts that employment has reached an all-time high.

“A large number of families leaving the country has impacted the entire labour market. The pandemic has also greatly changed people’s perspectives on work,” said Japuncic.

He believes that a reduction in income costs for employers and the public sector would enable higher salaries, which would potentially attract many of those who have emigrated back to Croatia.