Competitiveness means the ability of a country, an economic unit, to create an economic value that will meet the needs of the market on the free market and under the same conditions. Competitiveness depends on numerous factors, however, the ratio of the quality of products and services and their prices significantly determines the competitiveness of the country. There are more competitive theory, which are divided into classical and contemporary theory of competitiveness. The classic theory of competitiveness is the theory of absolute advantages and the theory of comparative advantages. Contemporary competitiveness theory based on economic development is considered to be an advanced factor-based knowledge-based, developed infrastructure, high technology and innovation. The competitiveness of world countries is measured by the Global Competitiveness Index, the World Competitiveness Index, the Business Competitiveness Index, the World Bank's Ease of Business Index, and the Export Competitiveness Index. The competitiveness analysis of the Republic of Croatia according to the Global Competitiveness Index shows a large lag behind Croatia for developed countries of the world. It is particularly worrying that Croatia lags behind competitiveness for the countries of Central and Southeastern Europe (E10) with which can be compared, given the similar social and economic development.