ZAGREB, Dec 5 (Hina) – A total of 51% of 432 directors, senior executives or company owners, who were polled by the Promocija Plus agency about the economic prospects for 2019 and the business optimism in Croatia, think that the situation will be unchanged compared to this year, while one in three (34%) expect some improvements next year.
Presenting the findings of the survey called “Barometer of Optimism”, conducted among members of the Croatian Employers’ Association (HUP), the pollster’s director Agan Begić said that the fact that only 34% of those polled expected a little better situation reflected the trend of decline in business optimism in Croatia, which could give rise to concern to some extent.
Considering the assessments of the state of affairs in 2018, every second respondent described the economic state of affairs this year as moderately good. Furthermore, five percent (5%) see the situation as excellent, and five percent (5%) describe the situation in the outgoing year as extremely bad. Also, 20% described the situation as very good and the same percentage saw the situation as bad.
Thus, the average grade on the scale from one to five is 3.01, which reflects the trend of mild rise from year to year, Begić said, adding that this trend is in correlation with economic growth.
Broken down by sectors, the lowest grade, 2.8%, was given by the construction sector, and the producing sector gave the highest grade, 3.09.
Broken down by regions, the current economic situation got the lowest grades in Dalmatia, 2.75% and Slavonia 2.89, while employers in central and northern Croatia as in the Rijeka area gave the highest grade, 3.
In the same vein, two in five employers (41%) assessed that the situation was moderately better in comparison to 2017, and one in three (33%) said it was about the same.
The findings of the poll show that 60% do not expect any major changes in conditions for doing business next year.
HUP Director-General Davor Majetić said the Croatian economy was functioning in an environment in which it was very close to its maximum. Croatia’s growth potential is now 2.5% to 3%, he explained.
He said that employers usually cite high taxes, inefficient public administration, poor judiciary, non-fiscal tariffs and labour legislation as well as corruption and labour shortages as main barriers to doing business.
Majetić called on the government to launch reforms that would remove the above-mentioned obstacles as soon as possible.
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