Economy Minister Darko Horvat said on Saturday the 3.9 percent economic growth in Q1 was spurred by a new investment policy and that a 5 percent GDP growth was also possible.

He was speaking in Prelog, northern Croatia, where the ministry, as part of the “One Stop Shop” campaign, informed citizens, entrepreneurs and public administration authorities about their rights on the domestic market.

Horvat said such growth happened because of “somewhat bigger investments, and in synergy with the real sector,” adding that investments totalled close to 40 billion kunas.

He said a 5 percent GDP growth was possible. “We just need to utilise the € 10.7 billion allocation European Union funds offer us.”

Horvat said northwestern Croatia was recognised as an investment brand in Croatia and beyond, mentioning that Croats were running four multinational companies in the Prelog Business Zone. “In Prelog all administration is in one place and an entrepreneur resolves everything in one day. We wish to bring that to other parts of the country as well.”

The minister said Varazdin was another town in north Croatia with a positive enterprise climate, adding that 2019 was the year of digital transformation and a watershed in the perception of Croatia as an enterprise and investment place.

Horvat said 10.5 billion kunas was currently invested in enterprise, and announced two tenders for the co-financing of 300 innovative projects worth 5.5 billion kunas.

When we ensure that the average pay is €1,000 net and reduce as much as possible the difference between what a worker receives and how they cost an employer, that will be the strongest population measure, a quality job and good pay, he added.

(€ 1 = 7.4 kunas)