The study "Croatia: A successful story even in hard times" highlights Croatia's geographical position and unused tourism potential.
Tourism, energy, road infrastructure, agriculture and food production are the top areas for development, while challenges are continuing in public administration structural reform, creating a more flexible labour market, supporting the production sector, creating jobs, boosting exports and sustainable development, and continuing to suppress corruption, the study says.
Croatia's EU accession will be a growth catalyst because the EU is a huge labour and capital market which will make Croatia commit to fiscal stability and improving the investment climate, the study says.
Too little has been invested in industrial development, which should be improved, and measures need to be taken to kickstart economic trends, according to the bank's chief analyst for Southeast Europe, Birgit Niessner.
Croatia, like other countries in the region, needs foreign investments and foreign investors require investment protection, the stability of the financial environment, greater efficiency in obtaining building permits, protection of private property, and dealing with illiquidity, the study says.
"Croatia, with five years of recession, is entering the EU as it deals with a series of problems, and some of our problems stem from the global situation," said Erste analyst Alen Kovac from Zagreb.
He said positive effects could be expected in the medium term and that "how positive they are will depend on Croatia's perseverance to continue implementing structural reforms."
Kovac underlined the need for a national consensus on the use of EU funds to stimulate competitiveness, develop the transport infrastructure and attract foreign investment.
"EU membership brings fiscal rules which will require a responsible fiscal policy and be a prerequisite for introducing the euro in the future," he told Hina.
Erste bank did the study on the occasion of Croatia's EU entry.