The performance of the human-19 pandemic resulted in a specific situation in economies around the world that will leave long-term traces in the economy and other social, political and commercial sectors. This final paper will present the consequences of this crisis and what measures are needed to mitigate the situation and stabilise the economy. A general theory on investments and institutional quality, as well as the situation in Croatia regarding GDP, GDP per capita and foreign direct investments, is presented. Investments of the Republic of Croatia have been analysed and how their changes affect the economy. In the analysis of institutional quality and investments, regression analysis of Croatia was carried out with the former socialist States Bulgaria, Romania, the Czech Republic and Poland and their interdependence on the basis of recorded values of GDP and foreign direct investments. Based on the analysis carried out, it was concluded that all these countries have achieved better economic growth and had a higher increase in foreign direct investments in the past few years. Croatia's response to the economic crisis based on the European Union Mechanism, called the Integrated political response to the crisis, has also been established and serves as an exchange of information between countries in order to facilitate coordination and action. There are also defined the actions of the fiscal and monetary policy of Croatia, which are their instruments, measures and objectives, how they affect the recovery of the economy and entrepreneurs, workers and citizens. The perspective part of the paper discusses post-pandemic estimates, based on OECD data and the state of capital market, foreign investments, employment and institutional quality, i.e. economic growth.