Press Release - Economic Recovery After Coronavirus

Never let a crisis go to waste

“The survey of the business environment in Croatia conducted by AmCham at the beginning of the year has shown that despite the challenges of the past year, in which a significant number of respondents reported a decrease in business activity, the majority of AmCham’s members are planning additional recruitment (64%) as well as expanding their business operations (74%) in the upcoming period. Also, 60% of the respondents are planning on enabling their employees to work from home even after the coronavirus pandemic has ended,” said Andrea Doko Jelušić, Executive Director at AmCham.

The coronavirus has mostly had an impact on the transformation of business processes (digitalization), short-term strategic goals, and finances and liquidity, so it is expected that the negative impact on business will continue over the course of the next two years, as well, added Ms. Doko Jelušić.

“Our forecast suggests that while COVID-19 has created profound difficulties, emerging markets will nevertheless power economic growth in the medium term. CEE countries are equipped better to bounce back from COVID-19 due to various factors such as the less complex nature of economies and lower manufacturing costs that attract new industrial investments and governmental support for new innovative manufacturing. Due to lower outsourcing of simple industrial production and shorter regional supply chains, the CEE region took the mildest hit in Europe. Despite the CEE region being economically heterogeneous, the Croatian economy based on tourism will face harder challenges to rebound”, said Marko Derča, partner, A.T. Kearney.

The challenges presented in this “great shakeout” are significant. Yet business leaders that learn the essential lessons from the pandemic, including effective use of scenario planning, are positioned to emerge stronger and more resilient as a result of the experience, concluded Mr. Derča.

The event took place at the Oleander terrace at Esplanade Zagreb Hotel and was attended by 100 private sector representatives.