Survey of the Business Environment in Croatia

Survey of the Business Environment in Croatia

AmCham’s 2019 survey reveals business trends, workforce challenges, and investment outlooks in Croatia, with recommendations for improving the climate.

AmCham Croatia, the country’s oldest foreign chamber, brings together over 220 companies employing more than 70,000 people. At the end of 2017, it conducted a business climate survey among its members. Most companies reported improved results in 2017, with 79% planning expansion and 71% planning new hiring over the next three years. The main obstacles to business are complex administrative procedures, unstable regulations, high labor taxation, and a shortage of skilled workforce. The past five years showed improvements in demand and financing conditions, but weaknesses remain in the judiciary and regulatory enforcement. Compared to other Central and Eastern European countries, Croatia offers less favorable business conditions, though advantages include tourism potential, EU membership, and strategic location. The business community is optimistic about future growth but stresses the urgent need for reforms in the judiciary, taxation, and administration.