ZAGREB, April 5, 2018 – A majority of respondents in a survey by the German-Croatian Chamber of Industry and Trade conducted in February believe the economic situation in Croatia is not good and fewer would invest in Croatia again.
Only 10% believe the economic situation in Croatia is good and only 33% believe it is going in the right direction, as against 57% last year, the Chamber said on Thursday.
The number of entrepreneurs who would invest in Croatia again was around 80% in recent years but has now dropped to 68%. A lack of reforms continues to be the main cause of dissatisfaction among the companies operating in Croatia.
The survey shows that 37% of respondents believe the economic situation in central and east European countries has improved, assessing it as good (30% in 2017). In those countries, the number of entrepreneurs who believe the economy is going in the right direction increased from 30% last year to 39% this year.
Also, 57% of respondents believe their companies will do better business in Croatia as well as elsewhere in central and eastern Europe, with 42% predicting a mild rise in exports (34% last year), while 42% predict a decline in investments (47% last year).
Respondents says the main disadvantages of doing business in Croatia are the high taxes, the tax system, poor prevention of corruption and crime, legal uncertainty and public administration, while the main advantages are European Union membership, the academic education of the workforce, employees’ qualifications, workforce productivity and good infrastructure.
Of the 20 central and east European countries covered by the survey, Croatia was eighth in the investment destination rankings. It has had the same ranking since 2014, except last year, when it was seventh. The first three places are held by the Czech Republic, Poland and Estonia.
Fifty-seven percent of respondents are for introducing the euro (46% in 2017).
The German-Croatian Chamber of Industry and Trade conducted the survey for the 13th consecutive year.
