Competitiveness is a measure of a country's ability to produce goods and services that pass the international market test in free and equal market conditions, while increasing the real income of the population (OECD definition). The aim of this final exam is to analyze the position of the Croatian economy through choosen indicators and explain the position of Croatia through various indicators in relation to the ten best ranked and ten lower ranked EU member countries and comparison of countries according to the GCI index. The final exam analyzes the key challenges to the competitiveness of the Croatian economy: Inefficient public administration and uneconomical management of state property, slow and inefficient judiciary, poor tax system, corruption at all levels of society, foreign trade deficit and public debt, education system, labor market and conservative labor legislation and the system of health care, pension insurance and social rights. The government should be much more resolute in transforming country where entrepreneurs can do business and citizens to live better, and it should also raise the existing level of knowledge in society, which would increase competitiveness and contribute to create a dynamic economy with sustainable growth.