ACREDIA: High Level of Insolvency in Croatia Remains in 2025.

Leading Austrian receivables and risk management company ACREDIA, in its latest insolvency research conducted in collaboration with Allianz Trade, predicts a global continuation of business bankruptcies over the next two years. Global insolvency will rise by +6 percent in 2025 and an additional +5 percent in 2026, while a slight decline of -1 percent is expected only in 2027.

The effects of U.S. tariffs, whose impact has been postponed for now, increase the risk of global domino effects, while additional pressure arises from the large number of newly established companies in the technology and artificial intelligence sectors.

Croatia: High Level of Insolvency Remains in 2025.

After a sharp increase in 2024, the number of bankruptcy proceedings in Croatia will remain elevated throughout 2025. According to data provided by ACREDIA, there are visible signs of short-term stabilization, but structural challenges for many companies remain.

In 2024, a total of 4,832 bankruptcy proceedings were opened, representing a 7 percent increase compared to 2023. Almost one-third of bankruptcies came from the construction sector, which remains particularly vulnerable due to a lack of liquidity.

From January to August 2025, 2,610 bankruptcies were registered, a decrease compared to the same period in 2024 (3,301 cases) and indicating a slight easing of the trend.

– We still see structural challenges, especially for smaller companies facing rising financing costs and limited liquidity reserves – emphasizes Michael Kolb, a member of the Management Board of ACREDIA.

The most affected remain the construction industry, retail, and the service sector, which are extremely sensitive to payment delays and stricter financing conditions. Although the Croatian economy continues to benefit from strong tourism and infrastructure projects funded by EU funds, the decline in private investments and higher interest costs increasingly burden the resilience of companies.

– For 2026, we expect stabilization at a high level, and a more visible recovery is anticipated in 2027, in line with the overall economic recovery of the euro area – adds Kolb.

Croatia: Weaker External Demand and Trade Tensions Pressuring the Economy

Tensions in global trade and weaker demand from Western Europe are increasingly affecting the Croatian economy. Although Croatia is less dependent on exports than some countries in the region, sectors such as manufacturing, logistics, and trade are already feeling the effects of supply chain disruptions and higher import costs.

According to the OECD and the European Commission, export growth in 2025 will remain moderate, as protectionist measures and weaker activity from key trading partners limit demand.

After a solid first half of the year, ACREDIA is recording early signs of a slowdown in export-oriented industries and increasing pressure in the construction, retail, and service sectors, which are facing higher financing costs and liquidity shortages.

– Many Croatian companies operate with low margins and heavily depend on stable cash flow. The combination of weaker external demand and more expensive financing further intensifies the pressure – explains Kolb.

Tourism and EU Projects Continue to Support Growth, but Weaker Investments Remain a Challenge

Tourism and numerous infrastructure projects funded by European Union resources continue to be an important support for the Croatian economy. However, according to analyses from the Croatian National Bank (HNB) and the OECD, private investments and corporate lending remain modest. Small and medium-sized enterprises still face difficulties in accessing financing, which is a long-term challenge in Croatia’s bank-dependent financial system.

– Croatia has a strong service base and stable public investments, but the resilience of the private sector will depend on companies’ ability to effectively manage liquidity and adapt to changing market conditions – emphasizes Kolb.

In the medium term, ACREDIA expects moderate economic growth, with ongoing structural risks. A significant recovery is anticipated from 2027 onwards, in line with the expected recovery of the euro area.