The European Commission's report on Croatia will confirm the country's "limited progress" in 2015 in fulfilling the recommendations made to the previous government, Commission Vice-President Valdis Dombrovskis said during a visit to Zagreb on Thursday, the Croatian Parliament press service said in a statement.

The European Commission vice-president for the euro and social dialogue discussed with members of several parliamentary committees the report on macroeconomic imbalances and risks which the Commission is due to release on Friday.

The report says that Croatia has made only limited progress in fulfilling the recommendations which the Commission made to the previous government.

Croatia has come out of the recession, as indicated by modest growth, a slight decrease in unemployment from 17% to 14%, and an increase in exports over the last two years, which shows Croatia has started to take advantage of being part of the single market, Dombrovskis said.

The Commission estimates that there are still serious macroeconomic imbalances and challenges that Croatia needs to address, namely public debt, a very high share of non-performing loans and a still high unemployment rate, he added.

Dombrovskis presented the priorities of the new European Semester: promoting economic growth, development, convergence and employment. In 2016, the focus will be on relaunching investment, pursuing structural reforms to modernise the member states' economies and responsible fiscal policies.

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