AmCham Croatia Presents Results of Business Environment in Croatia Study

Katarina Anđelković

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“Despite the good business results in 2022 and optimistic business plans, the caution of companies is observed in anticipation of possible negative effects on business. The main limiting factors in business are inflation and increasing energy costs and lack of appropriate workforce,” said Andrea Doko Jelusic, executive director of AmCham, presenting the results of a study on the business environment in Croatia, which was conducted in the period from December 12, 2022 to January 25, 2023, on a sample of 162 members of domestic and international companies in Croatia, reports Poslovni

Doko Jelusic added that more than 67% of respondents found 2022 better for business than the previous year, while for 13% of them, business in 2022 was worse than in 2021. If 2020 is omitted, marked mainly by the pandemic, in 2022, an increasing number of companies recorded a slowdown in business. Most respondents (51%) have increased the number of employees, while a third of the companies have maintained the same number of employees, similar to last year’s results. On the other hand, a considerable number of respondents (59%) evaluated the experience of doing business in Croatia as good or very good, and 53% of respondents noticed the improvement in business conditions in the last five years.

The most significant improvements in the five-year period were seen in the conditions of financing and increased demand for goods and services, as well as trade exchange opportunities and payment conditions, while the most significant limiting factors, according to the study subjects, were the availability and quality of the workforce, the price of work and the quality of the legal framework.

“The expansion of business is planned by 73% of respondents compared with 82% in last year’s study. In planned employment, the percentage is identical to last year – 66%; however, the proportion of those who plan to hire more than 20 employees is reduced, while the proportion of those who plan to reduce the number of employees is growing,” said Doko Jelusic.

“Compared to the previous (2021) year, in 2022, AmCham members recorded similar business results. Mild employment growth and satisfaction are recorded in business conditions over the previous five-year period. On the other hand, the proportion of respondents who record better business results is reduced. Inflation and growing energy costs were not at all in the focus of business owners in 2021, and in this year’s study, they took the central place as the main limiting factors. The lack of an appropriate workforce, which was in the first place in the previous year, has now taken third place,” said John Mathias Gasparac, the first Vice President of the AmCham manager.

Research areas include business in 2022, business environment, the impact of institutions on a business environment, comparison with the region, business expectations and attitudes to Schengen, and introduction of the euro and EU funds.

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