Industrial Performance in the European Union and Croatia: 1990-2016

Over the past decades Europe has experienced a substantial process of deindustrialization. This does not mean that industry is losing its spacious purpose in the economy because it contributes to progress and a sustainable and balanced growth and remains the backbone of the European economy. However, in a global context of increased competition, ageing, climate change, geopolitics and fourth industrial revolution, European industry face enormous challenges. In that context, after the global financial crisis, the importance of industrial policy has been proved by its inclusion between ten European Commission's political priorities. This paper considers the industrial performance of the European Union and of one individual member state – Croatia. The analysis is conducted for the 1990-2016 period through the Competitive Industrial Performance index and its sub-indicators determined within the three significant dimensions that capture several aspects of an economy's industrial competitiveness stage. The purpose of this paper is to provide a better grasp of the changing dynamics of industry and its impact for Croatia, within the current global economic climate.