In the first four months of 2025, Croatia’s construction sector showed moderate growth amid a slowdown in overall economic growth and changes in legislation. Despite the existing challenges, investments in infrastructure and renewable energy sources are supporting the positive dynamics of the industry.
Key indicators for January–April 2025
Growth in construction output: In February 2025, the volume of construction work increased by 8.7% compared to the same period last year.
New construction orders: In the first half of 2024, the value of new construction orders rose by 14.9% year-on-year, laying the foundation for activity in early 2025.
Gross value added: According to data from December 2024, gross value added in construction reached a record €1,450.5 million. Factors influencing the market
Infrastructure investment: Support from the European Investment Bank, including a €400 million loan, is helping to develop transport and energy infrastructure.
Development of renewable energy sources: The construction of solar and geothermal power plants, such as the 150 MW SE Promina project, is stimulating demand for construction services.
Legislative changes: The introduction of new property taxes and restrictions on short-term rentals create uncertainty for investors and may hold back growth in some market segments.
Forecast for the end of 2025
Expected growth: Croatia’s construction industry is projected to grow by an average of 2.4% in real terms in 2025, with growth supported by investments in infrastructure and energy.
Risks and challenges: A slowdown in economic growth, particularly in Germany, could negatively affect Croatian tourism and, consequently, the construction sector. Thus, despite the existing challenges, the Croatian construction market is showing resilience in 2025, supported by public and private investment in key infrastructure projects.
Experts Club has published a study on the dynamics of industrial production in Croatia and its trends in recent years. In the beginning of 2025, industrial production in Croatia shows moderate growth, despite fluctuations in previous months. According to the Croatian Bureau of Statistics, industrial production increased by 5.4% in February 2025 compared to the same period of the previous year. This is a slowdown compared to January 2025, when growth was 7.6%.
The following industries recorded the highest growth in February 2025.
At the same time, consumer goods production declined:
Monthly trends
Compared to January 2025, industrial production fell 3.9% in February. This is the first decline in the last three months, indicating instability in the industrial sector.
Historical dynamics of industrial production (2000-2024)
Below are the dynamics of industrial production in Croatia for the period from 2000 to 2024:
These data reflect fluctuations in Croatia’s industrial production over the last 25 years, with periods of both growth and decline.
Croatia has a multi-level taxation system that covers both legal entities and individual entrepreneurs (IEs). Let us consider the main taxes applicable to these categories of taxpayers.
Main taxes for legal entities in Croatia:
There are separate taxes for individual entrepreneurs.
Other taxes and fees
The Croatian tax system is characterized by progressive and diverse taxes, which requires careful planning and accounting when doing business.It is recommended to consult with professional tax advisors to ensure compliance with current legal requirements and optimize the tax burden.
Source: http://relocation.com.ua/osoblyvosti-systemy-opodatkuvannia-v-khorvatii/
In Dubrovnik, Ukrainian President Volodymyr Zelensky and Croatian Prime Minister Andrei Plenkovic met with Ukrainian children recuperating in Croatia, the press service of the head of state reported.
“Very pleased to be here today. Thanked the Prime Minister’s team for supporting our Ukrainian children, whose parents are heroes of our state, because they defend Ukraine. And there are, unfortunately, those who will remain in our hearts, in history, because they gave the most precious thing – life. We are very grateful to them. And none of us will never forget them,” – said Zelensky.
Currently, 90 Ukrainians are on vacation in the city of Split. All of them are children of soldiers of Kyiv region. Recuperation lasts 10 days and takes place within the framework of the program of the Embassy of Ukraine in Croatia for children of military men. The recreation is financed by the fund of the Honorary Consul of Ukraine in Croatia Ivica Piric. In total, more than 800 children have been able to undergo such recuperation since the beginning of the year.
“I am very glad that Croatia helps our Ukrainian children. Such assistance is very important. Such recreation allows us to support our children so that they smile. I can see it,” Zelensky noted.
Plenkovic added that the Ukrainian president’s visit to Croatia is related to the third summit “Ukraine – Southeast Europe”.
“We are here today to support Ukraine, your people and your president in the fight for your territorial integrity. We very much appreciate the heroism of your parents, with which they have been defending your state for two and a half years,” the Croatian Prime Minister said.
Zelenski and Plenkovic gave the children presents, and the children gave them flags with their signatures.
Minister for Foreign Affairs of Ukraine Andriy Sybiga met with Croatian Foreign Minister Gordan Grlic Radman in the framework of the Ukraine-South-Eastern Europe Summit, informed his Croatian counterpart about the situation on the battlefield and outlined Ukraine’s key defense needs.
“The Ukrainian Foreign Minister expressed his gratitude for the medical rehabilitation and recovery of Ukrainian defenders and their families in Croatia. This year alone, more than 800 children of Ukrainian servicemen have already been rehabilitated in Croatia. The ministers discussed the continuation and expansion of these programs,” the statement reads.
Sibiga also praised the solidarity of the Croatian side, in particular the leadership in assisting in the humanitarian demining of the territories liberated from occupation and the restoration of damaged energy infrastructure.
The Foreign Minister emphasized that Ukraine appreciates Croatia’s support for efforts to prevent the election of Russian representatives to the governing bodies of international organizations, including the Executive Council of the Organization for the Prohibition of Chemical Weapons. Sibiga also emphasized the importance of Croatia’s participation in the Ministerial Conference on the Human Dimension under the fourth point of Ukraine’s Peace Formula, “Release of all prisoners and deportees,” which is scheduled to take place in Canada in the near future.
In his turn, Grlić Radman emphasized Croatia’s readiness to continue to consistently support Ukraine in defending its sovereignty and territorial integrity.
The Croatian minister assured of the readiness of Zagreb to further assist Ukraine on its path to joining the EU and NATO.
The parties agreed that Croatia’s experience of joining the EU is important for Ukraine and discussed the provision of relevant expert support.
The death toll from the devastating floods in Bosnia and Herzegovina, which are being called the worst in decades, has already reached 19. On the morning of October 4, it was reported that heavy rains in Bosnia on Friday night had flooded several cities in the central and southern parts of the country.
After 16 people died in the municipality of Jablunice, rescuers also found the bodies of three people in the city of Fojnice, where the bad weather destroyed many houses and outbuildings.
Against this backdrop, Serbian President Aleksandar Vucic and Croatian Prime Minister Andrej Plenkovic agreed to provide all necessary assistance to Bosnia and Herzegovina.
Vucic previously noted that Serbia could send rescue helicopters and boats, as well as provide financial assistance.
And the Croatian prime minister said that his government is in constant contact with the head of the Council of Ministers of Bosnia and Herzegovina, Borjana Krishto, and is ready to provide “all the necessary assistance in eliminating the consequences of the flood.”
The EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, also confirmed the readiness to help. He noted that Bosnia could benefit from the EU’s Civil Protection Mechanism, which it joined in 2022.
