Last year was one of growth in all business sectors but not one of successful business, the Croatian Chamber of Commerce (HGK) says in an analysis.

Operating revenues increased in all sectors due to higher prices, mostly in energy (64%) and the hotel industry (43.3%). These two sectors also recorded the highest export growths, 128% in the hotel industry and 90% in energy.

The EBITDA margin was lower in most sectors than in 2021 and the largest drop was recorded in energy, followed by telecommunications, and the chemical and metal industries. The hotel industry, on the other hand, recorded the highest EBITDA margin growth after the IT, timber and food industries.

All sectors recorded employment growth except energy and the chemical and metal industries. The highest growth was recorded in the hotel and IT industries, of 16.8% and 15.2%, respectively.

Interestingly, the hotel industry, which is under extremely high pressure due to labour shortages, saw the highest relative pay growth. The cost of labour increased by 23% in one year and by 54% over the last two years.

HGK chief economist Goran Saravanja said the financial cost of adjusting to the European green transition was significant for the domestic industry and that decision makers must take into account business sustainability in the process.

The HGK analysis covers the trends which marked 2022 and the first half of this year, a period in which Croatia profited from accession to the euro and Schengen areas, alongside the upgrade of the credit rating to investment level, and lost due to the continuation of disruptions to global supply chains and rampant inflation, Saravanja said.