CERCLE DIPLOMATIQUE - issue 04/2019

LE MONDE CROATIA
Zlatni Rat is one of
the dream beaches
on the island of
Hvar.
Plitvice Lakes National Park has been a World Heritage
Site since 1979 (above).
Chilli and garlic are an
important part of Croatian
cuisine. Fishing boats in
marine in town of Cres, Island
of Cres (above).
Among the most popular holiday regions are Istria,
Split-Dalmatia, Kvarner, Zadar and Dubrovnik-
Neretva. The coastal town of Dubrovnik, surrounded
by a city wall and nicknamed the "Pearl of the Adriatic",
is one of the most important tourist destinations
with its Gothic and Renaissance buildings. Rovinj,
Poreč, Split and Medulin are also popular travel destinations.
Among the islands, Krk, Brač, Rab, Cres,
Pag Hvar or Korcula are very popular. The inland
capital Zagreb is famous for its medieval upper town
Gornji Grad and several museums. The rich flora
and fauna of Croatia can be discovered in the eight
national parks and eleven nature parks of the country.
In terms of economic development, Croatia, like
many other countries, was unable to escape the effects
of the financial crisis. Until 2008, the economy
was in an upswing phase. In the years thereafter,
however, real gross domestic product declined. This
was followed from 2015 by a counter-movement.
Since then, according to the Austrian Chamber of
Commerce, real GDP has risen by between 2.4 and
3.5 percent year on year. The positive development
continued in the first quarter of 2019 with a plus of
2.6 percent.
The expansion of the Croatian economy is strongly
driven by private consumption, tourism and, to a
lesser extent, exports of goods and investments.
Among the export-oriented sectors, the metal and
woodworking industries and transport are developing
positively. The past years have been marked by a
strong development of the young Croatian IT startup
and software scene. These sectors are becoming
increasingly important for the Croatian economy.
The very good know-how has led to the fact that
Croatian IT specialists are also in great demand on
the international labour market. According to the
Austrian Federal Economic Chamber, subsidies
from the EU Structural Funds also play an important
role, although Croatia is cautious when it comes to
accessing funds.
More than 700 Austrian companies are active in
Croatia. These include banks such as Erste Group,
Raiffeisen Bank International and Bank Austria as
well as the Upper Austrian aviation supplier FACC.
The crane manufacturer Palfinger, which was founded
in 1932, has had a location in Croatia since 2007.
And Palfinger is one of the pioneers of internationalisation.
The Palfinger Group comprises 86 companies
in 34 countries. With 35 manufacturing and assembly
plants and around 5,000 sales and service
PHOTOS: ADOBE STOCK
34 Cercle Diplomatique 4/2019