CROATIA Business climate and opportunities for cooperation with Finland Helsinki, 14th December 2015
CROATIA...... in numbers
CROATIA 2014 Area: 56,594 km² Population: 4.3 million Capital: Zagreb (800,000 inhabitants) Currency: Croatian Kuna (HRK) 1 EUR = 7.62 HRK, 1 USD = 7.19 HRK (December 2015) Zagreb Split Rijeka Osijek Zd Zadar Major cities (population) 0 200000 400000 600000 800000 GDP (2014): 43.1 bn EUR GDP per capita (2014): 10,158 EUR GDP growth (Q3 2015): 2.8 % Inflation (2014): 0.2 % Unemployment rate (ILO, 2014): 17.3 % Average net salary (June 2015): 768 EUR Export (2014): 10.4 bn EUR Import (2014): 17.1 bn EUR UK EU (28) Italy Slovenia Czech Republic Slovakia Hungary Croatia 0 10000 20000 30000 40000 Source: EUROSTAT
TOTAL TRADE = 27.44 bn Eur Export 10.34bnEur Import 17.1bnEur Foreign trade 2014 1,7% 89,5% 58% 5,8% 16% 1,6% 0,6% 0,1% Main partners: 1. Italy, 2. Germany, 3. Slovenia, 4. Austria, 5. Bosnia&Herzegovina 46. Finland (0.17%)
CROATIA FINLAND TRADE (2014) Total amount: 47,8 mil. Cro Fin: 17,7 mil EUR 0,2% of total Croatian export (49th export partner) 120 000 100 000 electrical transformers (29%), parts for electrical motors and generators (15%), insulated wire (11%), goods served on board planes (5%), household appliances made of iron and steel (5%) Cro Fin: 30,1 mil EUR 0,2% of total Croatian import (40th import partner) 80 000 60 000 40 000 20 000 0 20 000 40 000 2010 0 2011 1 2012 2 2013 2014 Export Import Total Balance boilers (13%), electrical apparatus for switching or protecting electrical circuits (8%), paper and paperboard (6%), newsprint (5%), parts and accessories of the motor vehicles (5%) 60 000 80 000
FDI = 29.9 bn EUR (1993( - 2015 Q2) ) Some of foreign companies active in Croatia Financial sector 25% Other business Wholesale trade Real estate 11% 9% 8% Post and telecomm. 6% Retail trade Chemical products 6% 6% Leading investors: AUSTRIA 22% NETHERLANDS 20% GERMANY 9% HUNGARY 7% LUXEMBOURG 6% ITALY 5% FRANCE 5% SLOVENIA 4% SWITZERLAND 4% Finland - 0.3 mil. NETHERLANDS 3% Source: CNB - IT services and trade
CROATIA FINLAND TOURISM (2014) 57,216 Finnish tourists = +5% 255 thousand overnight stays = +7% 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 No. of arrivals of Finnish tourists 2010 2011 2012 2013 2014 400 000 No. of overnight ihtstays 200 000 0 2010 2011 2012 2013 2014
CROATIA...... why invest
CROATIA Your reliable business partner Unique geostrategic location in Europe - linking CEE to Adriatic Stability & safety of business activity Highly educated, multilingual & competent workforce Modern transport infrastructure EU member Possibility of using EU funds Stimulating investment climate
STIMULATING INVESTMENT ENVIRONMENT Avoidance of double taxation 0% profit tax on reinvested capital Numerous incentives for business activities to investors Equal rights for foreign and domestic investors Free transfer of return on equity from the country INVESTMENT PROMOTION ACT: Tax incentives (reduction of profit tax to 10 0%; regular profit tax 20%) Employment grants (up to 18,000 EUR) Education grants initial and capital expenses labor intensive investment projects Incentives for: manufacturing activities, technology centers, strategic business support and high value added services, tourist activities iii (4 plus star hotels..) REQUIREMENT: Minimum investment: 150,000 EUR + 5 new workplaces Micro entrepreneurs: 50,000 EUR + 3 new workplaces
IMPROVING BUSINESS ENVIRONMENT Act on Investment Promotion Act on Strategic Investment Projects New legal framework in construction and physical planning (no location permit, shorter period of issuing construction permit) World Bank Doing Business 2016 Report: CRO 40/189 Recognized improvements: Starting up business Cross border trade More efficient enforcement of judgment Registering property E construction permit Obligatory e contribution payment The Global Competitiveness Report 2014 2015 2015 CRO 77/144
CROATIA......business possibilities
FINLAND & CROATIA BUSINESS OPPORTUNITIES Energy sector Mtli Metal industry Infrastructure ICT sector Electrical industry Tourism Food industry Telecommunications
Investment potential 1/2 INDUSTRY 21 5% (GDP) 21.5% (GDP); 20.2 20 2 % of total employment emplo ment Main industrial branches (export oriented): refined petroleum products; manufacture of other transport equipment; electrical equipment; chemicals and chemical products; food products; manufacture of fabricated metal products; pharmaceuticals Investment possibilities: Pharmaceutical, ICT, metal, electrical, automotive industry, wood, textile & leather processing, etc. Croatian companies suppliers & contractors supporting the investment: tradition & quality in manufacturing; educated workforce; experienced with extensive track record on foreign markets AGRICULTURE AND FOOD PRODUCTION 7 6 % (GDP); 7.6 (GDP) 5% off total t t l employment, l t 1 1.3 3 million illi h ha off utilized tili d agricultural i lt l area Wide range of products (wine, olives, cereals, fish, fruits, vegetables etc.); internationally known food products confectionary, diary products, olive oil, mediteranean fruits Investment potential in aquaculture and health food production TOURISM Revenue: 7.2 bn EUR (16.7 % of GDP: +5%) 12.4 mil. tourists (+ 5.1 %); 64.8 mil. overnight stays (+ 3.3%) Priority Investments in high quality tourist facilities Investment possibilities: Nautical tourism, tourism Health & wellness tourism tourism, Congress tourism
Investment potential 2/2 ENERGY Favourable climate & unpolluted natural environment: Over 2,700 hours of sunshine per year Windy regions by the Adriatic sea Geothermal energy from natural sources on the continent Access to vast amount of biomass Substantial hydro power y p p potential Investment possibilities: planned increase in capacity modernisation and construction of new powerplants (hydro power plants, thermal power plants, LNG terminal); RSE; environment protection & production of clean energy INFRASTRUCTURE 3 Pan European corridors passing through Croatia 7 internationall airports, 26 seaports, 4 riverports 29,547 km of roads, 2,726 km of rail network Investment possibilities: sea ports construction of new ); airports p terminals ((Port of Ploče,, Port of Dubrovnik); reconstruction and modernisation (Osijek Airport, Rijeka Airport)
CROATIA...... how to proceed
CROATIAN CHAMBER OF ECONOMY modern, professional institution with a 162 year old tradition represents, promotes and protects economic interests of its members a reliable source of information to companies 115.000 member companies Professional associations 20 county chambers in Croatia Representative offices abroad (Bruxelles, Moscow)
CROATIAN CHAMBER OF ECONOMY Tel.:+385 1 4828 382 Fax:+385 1 4828 379 Rooseveltov trg 2 10000 Zagreb, Croatia e mail: eoi@hgk.hr www.hgk.hr We promote, we connect, we can help!