Thursday, 11 April 2019

ACI Achieves Massive Revenue, Biggest Investment in History Completed

As Poslovni Dnevnik writes on the 10th of April, 2019, Croatia's ACI has published its revised annual financial statements for 2018. The company's revenue growth trend thankfully continued in 2018, its total revenue grew by seven percent when compared to 2017, amounting to 216 million kuna, while the company's operating income increased by eleven percent to 211 million kuna.

Revenues have been growing in almost all of ACI's marinas, and the company's profit also grew by 54 percent to a massive 38.4 million kuna, while its EBITDA increased by 22 percent to 93.9 million kuna.

The largest single investment project in ACI's history was also completed. In March, a new license was issued for the new ACI marina in Rovinj. This is a project that in which over 150 million kuna has been invested and can be briefly described in just four words: beauty, luxury, innovative solutions and security. The new marina's categorisation is now underway.

The new ACI marina has 1,400 m2 of commercial space available, and special attention has been paid to providing high level services on the premises, including catering facilities, restaurants and café-lounge bars, grocery stores, wellness centres, world-renowned brands, reputable sales offices for luxury yachts, charter agencies, a service centre for boats, etc.

The Rovinj ACI marina is equipped with the latest generation of WiFi systems, and luxury boats are provided with the most advanced video surveillance and access control system available. Particular care was taken to protect the surrounding environment and maintain the purity of the marine environment, construction materials and energy systems that provide maximum energy efficiency were used during construction, and all the benefits of LED lighting technology and lighting management were properly and readily applied. The official opening of the marina will be at the end of April this year.

The modernisation of the business that ACI has been intensively pursuing over the last few years is primarily focused on raising the quality of its services, attracting new clients and exploring the market potential of the Adriatic region as a whole.

Back in 2018, the company first published its own ACI No1 magazine, both in print and in digital format. It is a magazine which combines an ACI marina catalog, information for boaters, exclusive reportages and lifestyle themes, and a 2019 issue is just been made available.

ACI also achieves excellent results in the area of ​​digital business with its own reservation system. From last season, boaters have also had ACI's mobile application that provides easy and quick access to information and booking links available to them. For the third year in a row, ACI has also been using a digital sailing system with the help of special applications and devices used by sailors.

Given ACI's steady growth, 2018 was also marked by market research and a look into the development potential of the company, following which, a decision was made to embark on the development of new products and services, which will contribute to the diversification of the company's business.

Business cooperation includes the purchase of six ClubSwan36 sailing boats, and a range of marketing activities aimed at creating a recognisable image, regatta organisation, promotion and the creation of a tourism product aimed at raising the quality of ACI's services and the overall image of the Republic of Croatia as the world's leading nautical destination.

Make sure to follow our business, lifestyle and travel pages for much more.

Thursday, 11 April 2019

Chinese Reveal Interest in Croatia's Enfeebled Uljanik and 3 Maj Shipyards

As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".

Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.

The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.

"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.

He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.

Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.

"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.

In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.

"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.

When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.

Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.

Thursday, 11 April 2019

Above Board or Below Board, Croatia's Employment Issues Continue

Croatia's employment issues are somewhat perplexing to many, and although there has apparently been a massive drop in unemployment, there's only been a very slight jump in those registering as newly employed. The maths doesn't always really add up, but unfortunately the demographic picture of the country explains it all.

As Jadranka Dozan/Poslovni Dnevnik writes on the 10th of April, 2019, at this time of year, official data on employment levels tends to heavily reflect the huge levels of seasonality Croatia's labour market is affected by with every passing year, of course, this is primarily owing to the increased employment levels of seasonal workers before the start of the main tourist season in summer. The latest figures from HZMO (Croatian Pension Insurance Fund) from March show some growth in the number of insured persons, both on a monthly and an annual basis, with positive annual rates having continued to some degree or another since March 2015, while monthly growth began in only in February, according to analysts from Raiffeisen Bank (RBA).

Last month, the number of insured persons increased by 14,000, to a total of 1.52 million people, and it is realistic to expect that the number of insured persons will increase even more owing to the opening up of seasonal positions in preparation for the tourist season, an economic trend which could easily continue until September. When compared to March last year, the number of insured persons more than 32,000 or 2.2 percent higher.

Along with the pretty positive indicators from HZMO's labour market information, the Croatian Bureau of Statistic's labour force surveys are more in line with the process of the huge problem of the mass emigration of Croatia's fit, healthy, working-age population and the demographic of an aging general population. The latest survey, in which the last quarter of 2018 was included, indicates an annual drop in Croatia's working-age population from 3.54 to 3.52 million.

Those who are economically active in Croatia, whether they're already working or actively looking for a job, numbered just 1.8 million at the end of 2018, which is 42,000 people or 2.3 percent less than the year before. Despite the positive economic data, the activity rate dropped from 52 to 51 percent. Activity and employment rates have, at least for some time now, been indicative of much more than just the general rate of unemployment. This applies in particular to activities that are needed in more economically developed EU countries, and jobs that tend to be given to (highly) skilled staff.

Economists have been warning for a long time that recent developments in reduce the potential for growth in Croatia in the long term. The number of unemployed people in Croatia in the last quarter of the year, according to the results of the survey conducted in the last quarter of 2018, dropped when compared to the previous year by 46,000 people, or 23 percent, to 154,000 people. At the same time, however, the number of employees increased only very slightly, by 0.3 percent, meaning just 5,000 people more, to 1.64 million. In the fourth quarter, the activity rate and the employment rate recorded lower values ​​(51 percent and 46.6 percent), according to RBA.

In the last quarter of 2018, the numbers of economically inactive people older than fifteen increased by just one percent. Finally, the year ended with the fall of Croatia's unemployment rate to 8.3 percent, which is also the first drop below 10 percent since 2009, the year which followed the 2008 recession, but unfortunately this is partly a consequence of Croatia's negative demographic trend.

Although Croatia's growth in employment is of course very encouraging, analysts warn that it should be noted that the number of employees has been growing at a mild rate for the last five years, and that the average number of employees is still 6.5 percent lower than in before the crisis back in 2008. Overall, they conclude, Croatia's labour market remains very fragile and is burdened with some extremely serious structural problems, especially in terms of the total mismatch of supply and demand, long-term unemployment, and the falling number of working-age people for the ninth year in a row.

Make sure to follow our dedicated politics and business pages for much more.

 

Click here for the original article by Jadranka Dozan for Poslovni Dnevnik

Wednesday, 10 April 2019

Zagreb and Ljubljana Stock Exchanges Presented in New York

As Poslovni Dnevnik writes on the 9th of April, 2019, more than sixty meetings with investors were held by five Croatian and three Slovenian issuers as the Zagreb and Ljubljana stock exchanges presented their markets and issuers in New York on Monday, at the second largest international stock market - Nasdaqu, in cooperation with the Auerbach Grayson investment company and with a very good response from American investors, as the Zagreb Stock Exchange announced on Tuesday.

Although the Zagreb and Ljubljana stock exchanges have repeatedly presented their markets and issuers at local and regional investment conferences and on other similar occasions, this was the first time that such an event was organised outside of Europe, the statement said.

With the management bodies of both the Zagreb and the Ljubljana stock exchanges, investors were introduced to the Croatian companies AD Plastik, Arena Hospitality Group, Atlantic Group, Podravka and Valamar Riviera, as well as the Slovenian companies Krka, Petrol and Triglav Group. The Croatian investment association, Intercapital, presented the Croatian and Slovenian market and its potential, and, as previously mentioned, the companies held more than sixty individual meetings with US investors.

"For the first time in the history of the Zagreb Stock Exchange, we're organising the presentation of our most prominent issuers who have voluntarily accepted the highest standards of corporate governance and reporting to US investors.

We are very pleased with the level of interest and we hope that acquainting US investors with our companies and the potential of our regional market will result in their interest in investing in Croatian and Slovenian companies,'' said the director of the Zagreb Stock Exchange, Ivan Gažić, the president of AD Plastik, Marinko Došen, added that he hopes that the New York presentation will help attract new investors to Croatia.

"We support all the activities of the [Zagreb] exchange, which will enable us to revive the Croatian capital market with joint forces, we're pleased with the level of interest of American investors in AD Plastik, and I believe that the potential of our shares and business will be recognised on that market as well,'' Došen stated.

Make sure to follow our dedicated business page for much more.

Tuesday, 9 April 2019

Veljko Ostojić: Only Lowering Taxes Can Save Croatia

As Novac/Veljko Ostojic writes on the 8th of April, 2019, after almost a decade of high growth rates in Croatia's domestic tourism indicators, the dominant feature of this season, at least from the market's point of view, is uncertainty. The only thing we can be sure of, however, is the rapid growth period behind us. Facing Croatia is a period of struggle for each tourist owing to extremely turbulent broadcasting markets.

Such a destiny is shared by all Mediterranean markets with the exception of Turkey, and tourism in the Mediterranean as a whole is influenced by two dominant trends.

The first concerns the general insecurity in the European Union's economy, driven by the slowdown in individual national economies, primarily in big players such as Germany and Italy. An additional element that generates general uncertainty is the potential of Brexit (should it ever happen at all), the real effects of which at this stage can't really be estimated. These movements deter people from spending too much money, which is felt by the lack of bookings and reservations. In the first two months of 2019, the annual cumulative booking from Germany to Croatia was a little less when compared to 2018, while the decline in British tourist reservations throughout the Mediterranean was much more apparent, with Brits booking their holidays in the sun in advance being 10 percent lower on average than last year.

The second trend is the return of an old tourism king, Turkey, which has been a source of discomfort and nerves for Western Mediterranean countries, especially Spain, especially with its policy of subsidised travel arrangements last season, this season, Turkey is set to continue to record high growth rates of reservations from key European emission markets.

Such is an environment that defines the prospects of Croatian tourism not only this year, but over the next few years. The Croatian Tourism Association decided to quantify the effects of these trends on the expectations of Croatian tourist companies and the results of that survey were published in the first issue of Tourism Impulse, which will be published continuously every quarter. They surveyed the fifteen of Croatia's largest tourism companies, which account for 81 percent of the country's hotel sector.

The survey has shown that Croatian travel companies are experiencing revenue declines on one hand, and rising costs, primarily regarding labour, on the other. Croatian tourist companies are expecting slower annual revenue growth by 11.4 percent when compared to last year. Without changing the business environment in which Croatian tourism operates, this will result in a reduction in profitability and of course, a reduction in investment potential. With Croatia's damning reputation among foreign investors on the world stage, this really is the last thing it needs to seek to encourage.

The rather damp expectations of some of Croatia's largest tourist companies also show a drop in profitability this year by almost five percent and, as a consequence, the reduction of investments this year by a concerning twenty percent. Over the next two years, a further decline in investment is expected at a rate of 33 percent when compared to the periods in 2018 and 2019.

Reducing investment potential in tourism has a significant impact on the long-term prospects of Croatia's tourism. It is clear to all that in the long-term, Croatia must compete exclusively with quality rather than price. Reducing prices as much as possible to compete with Turkey on a surface level will only destroy the Croatian coast and Croatia's tourism sector as a whole. This isn't an option.

To be able to really compete with quality, apart from having determination to do so, it is crucial to attract and stimulate investments, something Croatia lacks in, and rather severely.

For that, Croatia will have to make numerous significant changes to its business framework. Today, Croatia is one of the least competitive in investing in tourism in the entire Mediterranean and has the highest tax burden of them all, especially if we look at the VAT rate. Spain, France and Italy have a reduced their VAT rates to help boost tourism. Croatias VAT rate, however, is 13 percent for hotel accommodation and 25 percent for hospitality services. Only Denmark is operating anywhere close to that in the whole of Europe, and one can hardly compare Croatia to Denmark.

Tourism directly and indirectly generates nearly twenty percent of Croatia's GDP, the sector generated eleven percent of all investments in Croatia. There is a lot of discussion about the optimal structure of the economy in which tourism makes up such a big part of it, and this, like many such discussions in Croatia, is often a waste of time. In a situation where tourism is experiencing significant growth rates and becoming an increasingly important factor in the receptive Mediterranean market, such discussions are quite unnecessary.

Of course, the priority requirement for Croatia's tourism growth is to boost investment, which will continually increase the country's overall quality.

If VAT on the entire tourist service is reduced to the level of Croatia's competitive countries, tourism can attract an additional three billion euros of investment, it can increase employee salaries by twenty percent and continue to rise over the next few years, which will further stabilise budget revenues and raise the standard life in Croatia in general.

Make sure to follow our dedicated business, lifestyle and travel pages for much more.

Tuesday, 9 April 2019

From Dalmatia to Karlovac and Rijeka, Chinese Eye Up Croatia

As Gordana Grgas/Novac writes on the 8th of April, 2019, if there was a European tender held solely to attract Chinese investment, the champion would certainly be Great Britain, followed by Germany, and then immediately by Italy and France. Croatia might not be anywhere near the top of China's European ''wish list'', but despite that, the Chinese interest just keeps on coming...

The countries which make up Central and Eastern Europe are low on the aforementioned European scale, even though with China, at least since the year 2012, they have enjoyed a special relationship through the China + 16 initiative, which, as a parallel diplomatic format, tends to irritate the larger, more powerful members of the European Union, as well as the European Commission itself. One of lowest on the list is Hungary with its Eurosceptic government led by Viktor Orban, and Croatia is at the very bottom, but the desire is to alter that.

This week, there is an official visit by Chinese Premier Li Keqianga to Croatia, and the eighth summit of sixteen countries of Central and Eastern Europe with China down in Dalmatia's southernmost city of Dubrovnik, and it might be the easiest thing to look at it all as part of a political show that could act as bait for investment. Whether or not this investment will really happen and what shape that might take, whether it will be done mainly through private projects, for example in tourism, or through major state projects in the rail and port sector, is not yet clear at all.

Croatia will sign nine general memoranda with China in the areas of trade, investment, agriculture, transport, science, technology and innovation, education, sport and tourism, and the most convenient customs administration protocol that will enable the export of Croatian dairy products, which are greatly loved in China. Croatia also intends to join the Asian development investment and infrastructure bank headquartered in Beijing, how much that will cost Croatia however, is not yet known.

How large European countries cooperate with China was demonstrated just ten days ago by the Italians and the French. For the visit of Chinese President Xi Jinping, Rome signed 20 agreements (and joined One Band, a one way system that connects China with the rest of Asia, Europe and Africa, and expands its trade and influence). In Paris, 15 such agreements were signed, where either contracted or announced transactions amounting to billions of euros were dealt with, covering a wide range of areas - from exports of Sicilian red oranges and French frozen chicken to the opening of Italian ports for Chinese investors, sales of 300 Airbus aircraft, energy projects, shipbuilding, etc.

After the construction of Croatia's much anticipated Pelješac bridge, which is funded primarily by European Union money, Croatia hopes for more Chinese investments in national transport projects. This regards the port of Rijeka and the entire Rijeka traffic route, including the line from Rijeka to Karlovac, as well as projects such as airports.

According to data which takes the whole of Europe into account, during the period from 2000 to 2018, almost 47 billion euros of direct investment from China was invested in Britain, Germany saw 22 billion euros, Italy saw 15.3 billion euros, and France saw 14.3 billion euros. Hungary saw a significantly smaller figure of 2.4 billion euros from the Chinese, Poland saw even less with 1.4 billion euros, Romania saw 900 million euros, and Croatia saw just 300 million euros. A stark contrast to the United Kingdom, which is by far one of Europe's most powerful nations.

In the region, the intensity is getting stronger, and in neighbouring Serbia, Chinese loans have come in handy when building transport infrastructure and energy projects and, but that medal, like any other, has two sides, and the takeover of companies hasn't always been met with welcome arms by the Serbs.

The aforementioned data report shows that the culmination of Chinese investment in the EU was reached back in 2016, largely through the take over of companies, and over the last two years, it has fallen, which is attributed to more stringent rules implemented by some EU member states, as well as increased capital controls conducted by Beijing.

For Zagreb, it was a bit uncomfortable to get closer to Communist China in the above mentioned period, as the common policy of overseeing and limiting the Chinese penetration of the ''Old Continent'', especially in strategic and technologically sensitive areas, was being undermined. That chapter however, appears to be well and truly over in Croatia's eyes.

While large investments and projects are anxiously anticipated here in Croatia (and the Chinese interest in Rijeka and the Rijeka-Karlovac line is at least nine years old), data on trade relations show that there is a deficit. State Secretary Nataša Mikuš Žigman notes that there has been a noticeable increase in the volume of trade between Croatia and China, but imports are growing more than exports are. Last year, exports of goods amounted to 133.4 million euros, an increase of 19 percent when compared to 2017, while imports amounted to 803 million euros, an increase of 15.6 percent.

Croatian companies might be able to export more to China in the future, and the business forum being held in Dubrovnik is an excellent chance to showcase some innovative Croatian export ideas, but for now, the main export products continue to be raw or semi-finished products such as stone, leather, untreated wood and polymers, while when it comes to imports, we can see the reign of traditional Chinese consumer goods, white electronics and telecommunications equipment, as well as a constantly increasing number of Chinese tourists visiting Croatia, too.

As the Chinese continue to ramp up their business in Croatia, from Pelješac bridge to Rijeka's port, more announcements continue to appear, and just recently we reported on the Chinese plan to open up a car factory tucked away among the citrus trees of southern Dalmatia's fertile Neretva valley, more precisely in the Nova sela business zone near Kula Norinska in Dubrovnik-Neretva County. While many remain concerned about Chinese influence in Croatia, many others are much more occupied and lured by the promise of an economic boost and employment opportunities.

Make sure to follow our dedicated business page for more information on China-Croatia relations and much more.

 

Click here for the original article by Gordana Grgas for Novac/Jutarnji

Sunday, 7 April 2019

Chinese Building Car Factory in Dalmatia, Jobs for 500 People

Chinese-Croatian relations grow ever closer as the Chinese expand their business empire in Dalmatia, not merely stopping at Pelješac bridge. The Chinese are now setting their sights on a vehicle factory in southern Croatia.

As Poslovni Dnevnik writes on the 7th of April, 2019, an army of unemployed people, almost three thousand of them in total who are registered at the employment centres in Metković and Ploče in the Neretva region, received the news with understandably huge enthusiasm.

The Chinese will re-launch the Neretva valley, Slobodna Dalmacija writes, breathing life back into a part of Dalmatia that really needs it. Apart from the fact that they are already working on the aforementioned construction of the much anticipated Pelješac Bridge, the Chinese will soon embark on yet another major project in Croatia - a factory for electric cars and scooters in the Nova sela business district, which has so far been being developed in the Neretva valley's Kula Norinska area, but at a very slow pace.

This slow page is set to change a lot when the Green Tech Group, registered as a company in Zadar by Karl Soong along with Croatian entrepreneurs Mladen and Anthony Ninčević, starts with the construction of electric vehicles intended for the markets of Central and Eastern Europe down in Nova sela.

There are many unemployed people living in and around the Neretva valley, which is close enough yet just a bit too far away from potential employment in tourist areas like Dubrovnik. This news naturally brought a smile to the faces of many seeking steady work as in Kula Norinska, work began on the infrastructure in the future business zone in Nova sela, thus making this potentially enormous capital project start right there on ground in Dalmatia.

Twenty people would be employed to start things up at Dalmatia's brand new factory. However, when investment in the production of electric scooters, automobiles and batteries begins to add up and things gain some motion, up to 500 workers will be able to gain employment in various positions in the electric vehicle production facilities.

Make sure to follow our dedicated business page for more on China-Croatia relations, business in Croatia, the investment climate and working in Croatia, and much more.

Saturday, 6 April 2019

Croatian Nautical Tourism Revenue Three Percent Higher in 2018

Nautical tourism is yet another tourism sector that Croatia would do very well to get stuck into, much like the country's already blossoming medical tourism industry. As more and more people arrive by sea to explore the beauty of the Croatian coast and more than 1000 islands, it seems revenues are gradually on their way up, too.

As Morski writes on the 6th of April, 2019, in a total of 142 Croatian ports designed for nautical tourism in six different Adriatic counties last year, a total of 857 million kuna in revenue, which is nearly three percent more than in 2017, was recorded, and the highest of this revenue, 618.1 million kuna (seven percent more), came from the renting of berths, as has been deemed from the data taken from the Central Bureau of Statistics (CBS).

In Croatia's numerous nautical tourism ports, on the 31st of December 2018 there were 13,617 vessels moored on a permanent basis, which is 1.4 percent more than the number recorded one year earlier on the 31st of December 2017, according to a report from SEEbiz.

According to the type of vessel permanently moored in the sea, the most numerous of all were yachts (50.1 percent), followed by motor yachts (46.1 percent) followed then by various other types of vessels (3.8 percent).

The largest number of vessels permanently moored were operating under the flag of the Republic of Croatia, equalling 44.0 percent in total. Following came vessels all sailing under various European flags - Austria (15.8 percent), Germany (15.2 percent), Slovenia (5.1 percent), Italy (4.2 percent) and the United Kingdom (2.2 percent).

In 2018 there were 194,164 vessels in transit, which is 3.8 less than there were back in 2017.

According to the type of vessel in transit for which a berth was used, the highest number once again were sailing yachts (67.3 percent), followed by motor yachts (28.3 percent), and then came other vessels (4.4 percent).

In the year 2018, the highest number of vessels in transit were from the Republic of Croatia (47.7 percent), Italy (13.9 percent), Germany (12.8 percent), Austria (6.6 percent) and Slovenia (3.8 percent) which makes up 84.8 percent of the total number of vessels in transit.

Make sure to follow our dedicated lifestyle page for much more. If it's just sailing in Croatia you're interested in, give Total Croatia Sailing a follow.

 

Click here for the original article by SEEbiz

Saturday, 6 April 2019

Invest Croatia: New Data Source for Investment Launched

At the beginning of April 2019, the Ministry of Economy launched a new website dedicated to investors - Invest Croatia.

As Poslovni Dnevnik writes on the 5th of April, 2019, Invest Croatia is available in both Croatian and English language and contains an abundance of useful and necessary information for the preparation and eventual realisation of investment projects in the Republic of Croatia, from general macroeconomic indicators, all the way to the examination of entrepreneurial zones and a list of available incentives for investors.
 
After making a decision or selecting Croatia for the realisation of an investment plan, the next step for the investor is to find an adequate location and set about completing the investment project. In addition, on the brand new Invest Croatia page, a map of available entrepreneurial zones by county - http://investcroatia.gov.hr/zone/, with a very detailed view of the size of the available land, its purpose and prices, all the way up to information about communal connections and companies which already operate in this area are readily available.

Furthermore, would-be investors will have a detailed overview of the steps and necessary actions that need to be taken in realising their respective investment projects http://investcroatia.gov.hr/investirati-pregled-koraka-realizaciji-investijskih-projekta/.
 
In addition to this, Invest Croatia has several very useful tools, such as the Investment Calculator, which allows you to calculate the amount of incentives an investor can get for their project. The calculation is based on the introduction of a number of specific variables - the type of investment, foreseen investment costs, the planned number of new jobs, employee average salaries, the investment location, and the enterprise/company size.
 
Publications posted on the new Invest Croatia page will offer proper assistance to investors in decision-making, as well as during the actual investment project implementation process. They include an investment guide, a catalog of investment opportunities and sector publications, as well as an array of successful stories of companies who are already operating in the Republic of Croatia, and official statistics claim there are almost 16 thousand such companies at the moment.

Make sure to follow our dedicated business page for more on investment in Croatia, the investment climate, doing business here, and much more.

Friday, 5 April 2019

World Bank Foresees Croatian Economic Growth in Next Three Years

Economic growth in Europe and Central Asia slowed down to 3.1 percent in 2018, and it is predicted to fall to 2.1 percent in 2019 due to a slower rate of global growth and uncertain prospects.

As Poslovni Dnevnik writes on the 5th of April, 2019, the Croatian economy continued to grow at a rate of 2.6 percent in 2018, while in the forthcoming period from 2019-2021 moderate growth is expected at an average rate of 2.5 percent, according to the World Bank's most recent report on the latest economic trends in Europe and Central Asia (N1).

The countries of the region recorded different rates of growth. Growth at the regional level has greatly contributed to positive developments in the GDP data of Russia as the largest economy in the region, just as the accelerated growth did in Albania, Hungary, Poland, and Serbia. On the other hand, Turkey has experienced a significant slowdown in growth due to the pressure of the financial market and currency issues. Namely, in 2019, it is expected to grow by 1.0 percent, which is a significant drop compared to 7.4 percent back in 2017.

"Europe and Central Asia are vulnerable to global uncertainty and are faced with serious long-term challenges such as aging populations, a decline in productivity, a decline in investment, and climate change. It is good that there are a whole range of possible solutions available when public policies are geared towards mitigating these challenges,'' stated Cyril Muller, Vice President of the World Bank for Europe and Central Asia.

"Countries should work harder to attract investment, enhance their participation in global value chains, and ensure that more people are able to access financial services such as bank accounts and electronic payments."

Regional growth is expected to recover its power in 2020 and 2021, as it is predicted that the gradual recovery of Turkey will serve as a counterweight to the restrained activity in Central Europe as a whole. However, the long-term challenges of the region are still substantial.

Make sure to follow our dedicated business and politics pages for much more.

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