For the second year in a row, Croatia’s ranking declines.
Croatia’s fall in the new “Doing Business 2018” rankings from 43rd to 51st position explains why the country has a lower rate of economic growth despite the favourable international environment. The report also demonstrates all the difficulties which entrepreneurs in Croatia have to face, reports Večernji List on November 1, 2017.
In the latest report on the ease of doing business issued by the World Bank on Tuesday, Croatia is ranked 51st among the world’s 190 countries. Last year, it was listed as the 43rd best country in the world.
“It is evident that we have seen a fall in the competitiveness and ease of doing business. Croatia is behind some of other economies in the region, such as Serbia, Bulgaria and Kosovo,” said Zdeslav Šantić, chief economist at Splitska Banka.
Among countries in the region, Macedonia is 11th, Kosovo 40th, Montenegro 42nd, Serbia 43rd, Romania 45th, Hungary 48th, Bulgaria 50th, and Bosnia and Herzegovina 86th.
“This report explains why Croatia experienced economic crisis for longer and why it now has a lower economic growth despite the favourable international environment,” added Šantić.
The worst decline, according to the World Bank report, was recorded in the category of tax payments, where Croatia dropped from 49th to 95th position. In the category of execution of the contract, Croatia fell from the 7th to the 23rd position, and in the availability of electricity from 68th to 75th place.
In the category of solving insolvency, Croatia dropped from 54th to 60th position, in credits availability from 75th to 77th position, and in the protection of minority shareholders from 27th to 29th place.
“Croatia’s weaknesses need to be addressed, especially in the context of the current main issue of entry into the eurozone. The report further shows that a number of reforms are needed that would enable faster development of small and medium-sized enterprises, thereby increasing the potential growth rate of the economy,” said Šantić.
In the category of cross-border trading, Croatia recorded a maximum of 100 points, just like last year, which means that it is among the best economies in the world. Croatia improved its position in the business establishing category, where it jumped from 95th to 87th place.
In the property registration category, Croatia has moved from 62nd to 59th position, and it has climbed two positions higher in the category of issuing building permits.
“This report does not only reveal the difficulties faced by foreign investors, but also by local entrepreneurs in their daily lives, which demotivates them in further investments and business expansion,” concluded Šantić.
This is the second year in a row that Croatia has dropped on the World Bank’s Doing Business list. Last year it fell from 39th to 43rd position.
Translated from Večernji List.
