Croatian companies are a little more optimistic than those in neighbouring countries regarding economic recovery and expect their revenues to drop by about 13 percent this year, as well as a 4 percent drop in the number of their workers and an 8 percent drop in investments, a survey shows.
The survey, “The impact of Covid-19 on business” was carried out by the American Chamber of Commerce in Croatia and the consulting firm Kearney and was presented on Wednesday. It covered several countries in central and eastern Europe, and more than 100 Croatian companies participated, mostly SMEs with up to 250 employees.
The results were presented via an online conference on Wednesday by Kearney’s Marko Derca, who said that Croatian companies are on average a little more optimistic and see new opportunities in this crisis.
Accelerated digitisation and more working from home options
The survey showed that the majority of companies (59 percent) had plans prior to the crisis to deal with emergency situations aimed at ensuring the continuity of their business.
Working from home did not present any major problems, Derca said, adding that 58 percent of Croatian companies said that more than 80 percent of their employees are working from home while 48 percent think that the number of days their employees will work from home will increase.
During the crisis, companies saw an opportunity to accelerate digitisation and increase productivity, with 56 percent saying that the crisis will result in digitising business processes, while 30 percent agree and 58 percent partially agree with the claim that the crisis will result in increased robotisation and automation.
Changes in supply chains, opportunity to consolidate industry
About 55 precent of the companies said that they are considering changing their supply chains, which Derca believes is one of the rare positive consequences of trade wars, primarily between the USA and China.
Jump in Internet buying
President Zoran Milanovic’s special economic adviser Velibor Mackic is of the opinion that after the budget revision in May another will follow in the autumn considering the contraction of tourist demand and the lower revenue from VAT, which could also result in increased unemployment.
The CEO of PBZ Card, Mislav Blazic, said that companies had experienced an enormous drop in turnover in March and that at one point more than 60 percent of retail outlets were closed.
On the other hand, there was a significant increase in online sales, and in April PBZ Card saw a 100 percent surge in turnover, Blazic said.
The director of AmCham Croatia, Andrea Doko Jelusic, said that although the pandemic accelerated the process of digitisation, in Croatia the percentage of companies that have accepted digital tools in their business is lower compared to other central and eastern European countries, with the exception of Internet sales.
