AmCham Croatia conducted its annual survey on the business environment in Croatia between December 2023 and February 2024, gathering responses from 116 executives of domestic and international companies. The findings offer insight into business performance in 2023, perceptions of the local investment climate, and expectations for the next three years.

Business Performance in 2023: 63% of companies reported improved business results compared to 2022, while 27% saw no change and 10% reported a decline.

Employment Trends: 48% of companies increased staff, while 16% reduced headcount—marking a slight rise in layoffs compared to the previous year.

Business Environment Rating: 59% of respondents rated the business environment in Croatia as good or very good. 53% believe business conditions have improved in the last five years.

The top three challenges cited were:

1. Lack of adequate workforce
2. Inflation
3. Labor taxation

These issues also ranked highest in the previous year’s survey.

The cost of labor, availability and quality of the workforce, legislative clarity, and the efficiency of the judiciary were identified as key areas needing improvement.

30% of companies see Croatia’s business environment as better than other CEE countries—up from 20% last year. The biggest drawbacks compared to the region include a small market, slow administration, and high taxes.

A strong 79% of companies plan to expand operations in Croatia within the next three years. 72% expect to create new jobs, with 21% planning to hire more than 20 employees.

Despite persistent structural challenges, the business community remains optimistic about Croatia’s economic potential. Foreign and domestic investors appreciate Croatia's EU membership, geostrategic position, and tourism potential, but emphasize the need for targeted reforms to ensure continued competitiveness and growth.