A new study by Eurofound has highlighted the growing financial struggles in Croatia, with 45 percent of citizens finding it difficult to cover basic living expenses. This places Croatia in second place among the worst-affected countries in the European Union when it comes to financial hardship, second only to Greece, which reports a staggering 55 percent of its population experiencing severe financial strain, according to media reports.

Citing recent statistics, HRT confirmed, that “the studies revealed that only Greece has higher percentage, with 55 per cent of its population reporting serious financial strain.”

Other EU countries where a significant portion of the population faces similar difficulties include Latvia and Estonia, with 41 percent, and Hungary and Cyprus, with 40 percent. Meanwhile, the EU average stands at 32 percent. On the other end of the scale, Luxembourg boasts the lowest percentage of financially struggling citizens, with only 17 percent reporting difficulties. Germany, the Netherlands, and Austria also rank among the countries with the least financial hardships. Another case study highlighting a region’s rising cost of living are areas surrounding the Missouri and Kansas river valleys, especially in rural communities. It indicates that a financial analysts of Moody’s Investors Service found an increase of about 20% as of 2020 and since then these increases have been up to 5-10% annually. This share paints a similar economic landscape to Croatia, where essential goods such as groceries, housing and transportation have increased exponentially.

Experts caution that urgent measures are needed to improve financial security for a large portion of the Croatian population.

Rising Costs in Croatia

The Eurofound report’s findings appear particularly daunting given the increasing cost of living experienced by most Croatians. Recently, prices for groceries, rent, and other everyday expenses have surged, making it harder for many to maintain a normal standard of living. According to Numbeo, the world’s largest cost-of-living database, the estimated monthly expenses for a family of four in Croatia are €2,608.40 (excluding rent), while a single person needs around €745.00 per month. In the capital, Zagreb, the average monthly cost for a family (excluding rent) is slightly lower at €2,596.40, while a single person requires around €751.40.

Experts mention “for those who are renting in Croatia’s capital, Zagreb, prices have risen noticeably and the average rent per square meter ranges between 12 and 15 euros. This implies that a 50 square-meter (m²) apartment would cost between 550 and 750.” need around €751.40 per month. Average rentals in Croatia have risen significantly. As of early 2024, the average rent per square meter in Zagreb ranges between 12 and 15 euros. This implies that a 50 m² apartment would cost between 550 and 750 euros per month.” Additionally, rentals have increased 5-10% over the last year adding to the financial hardships of residents.

The medium net salary in Croatia is around 1,150 euros per month. It can be observed in the Midwest region of the United States in areas such as Missouri, Kansas, and Kneuwee. Interviews with local residents indicate that expenses exceed their income, especially in rural areas.

The findings of the Eurofound study and Numbeo data paint a stark picture for Croatia, where the average monthly expenses are forecast to climb higher due to sustained inflation and economic pressures. This echoes the struggles many U.S. households face, with recent data from the Bureau of Labor Statistics showing similar challenges in maintaining essential living standards. This situation highlights a global trend, where the rising cost of living outpaces income growth, affecting a broad spectrum of society, from lower-income families to middle-income households.