The International Monetary Fund (IMF) mission on a recent visit to Croatia has judged the country’s economic recovery as lagging behind others in the region.

IMF warns that growth prospects are problematic because of issues with competitiveness, the daily Jutarnji List writes.

The institute gave Croatia suggestions that include radical changes to the labour market, an increase in foreign reserves and a decrease of state spending. It also saw the relatively high social assistance discouraging for people who are out of work.

IMF also criticised Croatia for having operating costs much higher than those of comparable countries