Croatia is becoming the 28th member of the European Union on July1st, 2013. Croatia has gone a long way from a socialist republic to an independentcountry recognized as one of the economic tigers of the Western Balkans in thefirst decade of the 21st century.Croatia has been hit by the global crisis, which turned out to be a huge externalshock for the region of the Western Balkans. Although it does not enter theeconomy through the direct channels, as local banks have not been engaged intoxic assets trade, but indirect channels, like the decrease of FDI, which deepensforeign trade deficits, slow credit growth or decrease of remittance which lead toeconomic disturbances during the last phase of the European integration process.Small economies, like Croatia, are exposed much more to the effects of any disturbanceson the international scene. They are dependent on foreign trade and the inflow of FDI, while their demand and inflation rate are affected by the pace of changes in big economies.The article addresses the problem of economic development in the countrywhich needs to deal with a problem of the economic crisis infection and the EUintegration process. The article studies the economic situation in Croatia which is the consequence of a recovery plan undertaken by the Croatian government.