66% of Croatian Companies Affected by Coronavirus Outbreak

Lauren Simmonds

Updated on:

As Novac writes on the 2nd of March, 2020, as many as two-thirds of Croatian companies are already experiencing the negative effects of the current coronavirus outbreak in their business operations, and more than 50 percent of them have experienced a fall in turnover, according to a poll by the Croatian Chamber of Commerce (HGK). Travel agencies, accommodation, food preparation and logistics companies are among the hardest hit, and small and medium-sized Croatian companies are feeling more of a negative impact than the larger ones.

”HGK immediately communicated the problems with crossing the border reported to us by transporters from the field to the Civil Protection Headquarters of the Republic of Croatia, and their prompt response saw it resolved in one day. We’ll continue to listen to the voices of businessmen and work to make this situation affect their business as little as possible,” said Luka Burilovic, President of the Croatian Chamber of Commerce, he then urged entrepreneurs and owners of Croatian companies to continue to report any business problems they encounter to HGK.

Most Croatian companies have reported difficulties in contracting new jobs, completing contracted jobs and renewing existing jobs, and there are also various problems with transporting goods, cancelling participation in international fairs, congresses and events, and reduced demand for products and services here at home on the Croatian market.

In addition to all of the above, 75 percent of Croatian companies expect a short-term negative impact owing to the coronavirus epidemic, with 15 percent expecting the virus to have a strong impact on their businesses. More worrying still, as many as 82 percent of Croatian companies expect long-term negative consequences.

The most pessimistic are those Croatian companies whuch are already feeling the dire consequences, again with travel agencies leading the way, as they expect the strongest effects on their long-term business.

As many as 92 percent say they expect strong and medium-term negative effects on their long-term operations, and 62 percent expect that negativity in the short-term. The following are Croatian companies in the business of providing accommodation preparation and serving food (hotels, resorts, camps, other accommodation types, as well as restaurants and cafes), of which 76 percent expect long-term and medium-term negative impacts on business in the short term.

The HGK survey also showed that in wholesale and retail, short-term effects are expected at a level of 38 percent, while 55 percent of Croatian companies operating within that sector expect long-term effects, and there are sectors that don’t anticipate strong short-term effects, but do expect problems in the long run. These are primarily mining, quarrying and administrative and support service activities (such as leasing companies), but also those who operate in the education, professional, scientific and technical sectors, as well as those in the real estate, financial, construction, and IT sectors.

Make sure to follow our dedicated business page for more on Croatian companies and the effects of coronavirus in Croatia.


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