Physical Planning, Construction and State Assets Minister Branko Bacic said in Sisak on Friday that the reconstruction of the earthquake-devastated region gave the momentum to the development of the construction industry and the overall economy.

The Minister underscored that 1,010 construction sites were opened in that area during the reconstruction process.

“After the economic crisis, the pandemic and the earthquakes, the construction sector gained momentum,” Bačić said at the 4th Meeting of Builders, organised by the Croatian Chamber of Crafts (HOK), adding that the craft industry is the foundation of a successful economy.

He underlined that 20,000 craft enterprises or small businesses participate in the construction sector in Croatia, and that construction grew by 8.4 percent in 2023, with the volume of work amounting to seven billion euros.

Construction in Croatia accounts for 10 percent of GDP and, along with tourism, it is the strongest branch of the economy and a pillar of accelerated economic growth, Bačić said.

However, the accelerated development brought new challenges to the construction industry, the biggest one being the lack of manpower. Ten years ago, 140,000 people were employed in the construction industry in Croatia and all of them were Croats, while today every third worker is a foreign national.

HOK President Dalibor Kratohvil said that 11,564 building permits were issued in Croatia last year, which is 3.6 percent less than the year before. However, the estimated value of these works is seven billion euros, or 21 percent more than in 2022.

Mayor Ivan Celjak said that 36 construction sites for residential buildings with 666 apartments will soon be opened in Sisak-Moslavina County. In addition to apartments and family homes, schools and hospitals are also being built in the county, and 50 construction sites have been opened.

Before Sisak, Minister Bacic visited Petrinja.

On 29 December 2020, nine months after the March Mw 5.4 Zagreb earthquake and amidst the COVID-19 lockdown, a devastating Mw 6.4 earthquake struck near the town of Petrinja, about 50 km SE from the country’s capital Zagreb. It was preceded by the Mw 4.9 foreshock from the day before. The main shock claimed 7 fatalities and caused widespread damage.