“In 2021, more than 70% of respondents reported improved business results in comparison to the previous year. When comparing the past few years, it is clear that AmCham member companies experienced a recovery in 2021. After the uncertain year of 2020, business results show that a pre-pandemic percentage of businesses have experienced growth in comparison to the previous year. The majority of respondents (48%) increased their number of employees, while 38% maintained the same number. The number of companies employing additional staff grew in comparison to the previous year. A considerable number of respondents (61%) rated the business experience in Croatia as good or very good, and 44% of the respondents noticed an improvement in business conditions in the last five years,” said Andrea Doko Jelušić, Executive Director of AmCham, while presenting the results of the Survey of the Business Environment in Croatia conducted in the period from December 16, 2021 to February 2, 2022 on a sample of 149 board members of domestic and international companies in Croatia.

The respondents saw financing conditions, increased demand for goods and services, and incentives and other government measures as the biggest improvements in the past five years, while they linked the biggest deterioration in business conditions with the availability and the quality of the workforce, as well as the enforcement of legal rules and procedures and the price of labor.

“Observing the five-year trend, with a smaller contraction in 2020, AmCham members continuously plan to expand their business operations in Croatia, so accordingly, 82% of the respondents are planning to expand their business in the upcoming period, while 69% of them intend to hire more employees,” added Doko Jelušić.

“After a slight decrease in business activities and some more cautious planning for the upcoming period in 2020, the survey results show a significant portion of companies that have seen an increase in terms of the 2021 business results, employment and planned growth. However, slightly more than a third of the respondents operating in other CEE countries consider the business conditions in Croatia worse, and more than half consider them comparable. The biggest shortcomings in comparison to other CEE countries are the small market, the judiciary, the slow administration and the level of taxation. In the next three years, 82% of AmCham member companies plan to expand their business operations in Croatia, while 69% plan to recruit for new positions. In addition, two-thirds of the companies participating in the survey are considering providing a flexible work model (working from home) for their employees after the pandemic is over. The main reasons for this decision include supporting a work-life balance, improved employee satisfaction/retention, and the health and wellbeing of employees,” said Ruža Tomić Fontana, President of AmCham’s Board of Governors.

The survey covered the following areas: business activities in 2021, the business environment, the impact of institutions on the business environment, comparison with the region, business expectations, and attitudes towards a flexible work model (working from home).

The survey was completed before the start of the war in Ukraine.