Croatia has seen a serious and worrying plunge, Radman said.
The country's rating calls for serious engagement of all, the employers, the unions and the government.
Croatia must invest more efforts if it wants to be an attractive country to its citizens and to investors, Radman said.
He said the Council would soon analyse the report and present its position on it.
Croatia has been listed for competition over the past three years and every year its position deteriorated, while comparable countries which have made more significant changes than Croatia have overtaken us, Radman said.
Croatia's position has improved only is some aspects, including bureaucracy, inflation, corruption and infrastructure quality. However, there were more elements which deteriorated in comparison to last year, including loan availability, projected recession, inefficient government spending, judicial autonomy, professional training, innovation capacity, and technology absorption, he said.
Nordic countries continue to hold prominent positions among the first ten countries.