While the USA leads Europe in prosperity, Croatia is among the European economies expected to surpass even the US in growth. “Croatia benefits from a rising share of the workforce in knowledge-intensive jobs, high up in the value chain,” explains Dr. Nima Sanandaji, director of the ECEPR think tank.

In 2024, the US economy grew by 2.8%, compared to just 0.8% in the Euro area. This trend continues in 2025 and beyond, with the US maintaining a growth advantage. However, Croatia is outperforming both. In 2024, Croatia’s economy expanded by 3.4%, surpassing the US. In 2025, growth is projected at 2.9%, more than twice the Euro area’s rate, and by 2029, Croatia is still expected to outpace the US at 2.6%.

The country’s success is driven by a booming knowledge economy. Between 2014 and 2024, the share of adults in Croatia employed in brain business jobs—high-value roles in IT, technology, and creative sectors—grew by 80%. Currently, 6.6% of Croatia’s adults work in these fields, surpassing France, Italy, and Spain.

According to ECEPR, countries with the fastest growth in brain business jobs tend to have lower tax levels, with over a third of job growth variation linked to tax differences. Croatia’s particular strengths lie in telecommunications (10,400 employed) and engineering & architecture (32,400 employed).

The ECEPR report highlights a strong correlation between knowledge jobs and lower unemployment. Regions with a 1% higher share of brain business jobs tend to have 0.27% lower unemployment, reinforcing the link between innovation-driven employment and economic success.