Almost 90 percent of members of the German-Croatian Chamber of Industry and Commerce rate the economic situation in Croatia as good or satisfactory, more than three-quarters expect continued economic growth at the same or an accelerated pace, and 86 percent would invest in Croatia again.
The German-Croatian Chamber of Industry and Commerce has been conducting research on the state and prospects of business in Croatia for the twentieth consecutive year, and presented the latest results on Tuesday.
This time, the survey covered 101 companies, with almost 90 percent of respondents rating the current economic situation in Croatia as good or satisfactory. More than three-quarters of those surveyed expect continued economic growth at the same or an accelerated pace in the coming year.
One of the results of this year’s survey shows that 86 percent of respondents would choose Croatia as a business location again.
– One of the most important results of this year’s survey shows that as many as 86 percent of respondents would choose Croatia as a business location again. This data clearly confirms the high level of trust entrepreneurs have in the Croatian market and its key advantages, such as EU membership and an attractive geographical position. At the same time, respondents recognize the room for further improvement – primarily through administrative simplifications, more efficient public administration, and a stable legislative environment. Croatia thus has the opportunity to further strengthen its position as a reliable and competitive economy in the region. Companies need security in planning, reliability, and simple, efficient, and transparent processes – stated Timo Pleyer, director of the German-Croatian Chamber of Industry and Commerce, at a press conference.
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As the biggest risk for economic development in the next 12 months, the lack of qualified workforce has been highlighted for the third consecutive year. Although respondents stated that conditions affect the rejection of additional orders and operational production, it is encouraging that labor costs remain largely unchanged, as do planned investments, which are being carried out without difficulties.
– The lack of qualified workforce is a challenge faced by most countries in Central and Eastern Europe, including Croatia. This trend requires proactive adjustments from employers. It is encouraging that Chamber members in Croatia have timely recognized the importance of investing in human capital – more than half invest in internal training programs and additional education for employees. In addition, measures such as increased digitalization and wage adjustments to market conditions stand out. This recognition and monitoring of labor market needs is the only correct path towards stable and sustainable development of the entire economic ecosystem – stated Marjan Vučak, president of the Management Board of the German-Croatian Chamber of Industry and Commerce.
This year’s survey placed special emphasis on business expectations in light of the global geopolitical scene. Most companies believe that the economic situation in Germany has a direct impact on their business, although their headquarters are mainly in Croatia and Austria. Furthermore, despite optimistic forecasts for the Croatian economy, over half of the respondents believe that new trade policies from the U.S. pose a threat to their business to some extent. This result mirrors a parallel survey conducted in 15 other Central and Eastern European countries, where participants predict a partial or strong negative impact of U.S. policy on business conditions in over 50 percent of cases.
