A survey by the German-Croatian Chamber of Industry and Commerce (AHK) shows that over 80% of the companies are ready to pick again Croatia as a business and investment destination.

The survey, conducted by the AHK from 25 February to 26 April in 16 central and eastern European countries, shows that the biggest challenges for entrepreneurs are high energy prices and a lack of skilled labour force.

The poll covered a total of 983 companies, including 105 local and foreign companies in Croatia.

Presenting the findings of this year’s survey, AHK Chamber president Thomas Sicla said that “a high number of companies, that is 84%, would again choose Croatia as a destination for their investments.”

The findings of the survey for 2021 showed that that 74% companies would pick Croatia again as a business and investment destination.

Every other respondent describes Croatia’s economic situation as satisfactory

More than a half of the respondents in this year’s survey, that is 53% of them, see the economic situation in Croatia as satisfactory, which is a 10% rise compared to the previous survey.

Furthermore, 21% described the situation as good.

One in three respondents says economy has improved

Also a third of those polled believe that the economy in Croatia has improved since last year.

Concerning the perception of the economic developments, in other countries covered by the survey a similar number of respondents as in Croatia find the economic situation to be good.

Nearly 97% of entrepreneurs optimistic

The lion’s share of the business people polled in this survey (97%) are optimistic about the prospects for doing business.

More than a half of the respondents believe that there will be improvements in their businesses, and a mere 10% are afraid of deterioration.

As for the short-term repercussions of the war in Ukraine, 80% of the respondents point to growing energy and raw material prices, and 56% point to disruptions in supply chains.

One in five respondents is afraid of losing business partners.

Asked when they expect the normalisation of the situation in the supply chains, 45% say they expect it in 2023, while 20% do not believe that it could be achieved in the foreseeable period.

Croatia’s advantages and disadvantages

Croatia’s EU membership, adequacy of tertiary education, skilled workers, infrastructure and productivity and motivation of employees are cited as the five advantages of Croatia.

The country’s disadvantages and challenges are insufficient struggle against corruption, tax burden, non-transparent public procurement and the public administration.

The performance of the current government was assessed as satisfactory by 35% of the respondents and as bad by nearly 40%.