German companies see opportunities here, particularly in sectors such as manufacturing, renewable energy, and digitalization—especially when it comes to diversifying supply chains
My first 100 days in Croatia were spent visiting numerous companies, institutions, and partners, allowing me to gain valuable insights into the country’s business environment, for Diplomacy&Commerce says Timo Pleyer, Director of the German- Croatian Chamber of Industry and Commerce. Croatia presents a dynamic market with strong potential, particularly due to its EU membership, strategic location, and skilled workforce explains Mr. Pleyer.
- You are the Head of one of the largest and most important foreign business chambers in Croatia. How would you assess the business climate in our country?
German companies see opportunities here, particularly in sectors such as manufacturing, renewable energy, and digitalization especially when it comes to diversifying supply chains, where Croatia plays an important role. At the same time, challenges remain. Many businesses mention administrative complexities and would like to see a more investment-friendly environment. Croatia offers a stable economic framework, but there is still room to enhance competitiveness through regulatory efficiency, a more predictable tax environment, and greater investment in innovation. Overall, I see significant potential for German- Croatian economic cooperation. Strengthening partnerships, reducing bureaucratic hurdles, and fostering a more innovation-driven economy will help Croatia position itself even more strongly in the region. As the AHK Croatia, the largest bilateral business association, we are committed to supporting this progress and providing our members with the best possible framework for success. We consistently focus on strengthening German-Croatian economic relations.
2. What do the numbers and statistics show? What were the imports, exports, investments, and in which areas in 2024? Are the investments two-way and to what extent?
Trade between Croatia and Germany continues to play a crucial role in Croatia’s economic landscape. According to the latest data for the period January to October 2024, Croatia’s exports to Germany amounted to 2.39 billion euros, marking a slight increase of 1.2% compared to the same period in 2023. At the same time, imports from Germany reached 5.01 billion euros, reflecting a 6.2% increase. In terms of investments, German companies have been active in various sectors, including manufacturing and infrastructure. While most German investments flow into Croatia, Croatian investments in Germany remain limited but are gradually increasing, especially in the IT and service industries. Strengthening two-way investments will further deepen economic cooperation and create new business opportunities. In order to achieve the targets in the field of renewable energies and to realize the given potential. Croatia offers good climatic and geological conditions for renewable energies, and there is great potential for expansion. Investors can orient themselves very well here. We also address the topic of renewable energies through various programs, delegation trips and projects. A great project is the Young Energy Europe initiative. The project is funded by the European Climate Initiative (EUKI) of the Federal Ministry for Economic Affairs and Climate Action (BMWK) and is carried out together with the foreign chambers of commerce of the partner countries.
3. Where is there room for improvement when it comes to business and how is your cooperation with decisionmakers?
One of the most frequently mentioned challenges by businesses in Croatia is bureaucratic complexity. Many companies, particularly foreign investors, face lengthy administrative procedures, regulatory uncertainties, and a complex tax system. These issues are consistently highlighted in our annual Economic Survey. As a result, AHK Croatia often supports businesses in navigating company registration processes, legal and tax compliance, and overall market entry. Additionally, we see strong demand for business partner searches and B2B matchmaking, as companies seek reliable connections to expand their operations. When it comes to cooperation with decision-makers, we maintain an open and professional approach, working to represent the interests of our members. Our priority is to ensure that businesses have access to relevant information and that their needs are effectively communicated within the broader economic dialogue.
4. What are the priorities of the AHK for 2025 and which projects you are working on would you highlight?
The priorities of AHK Croatia for 2025 focus on strengthening economic cooperation, supporting businesses in expanding their market presence, and promoting key industries through targeted initiatives and partnerships. Several strategic projects will shape our activities in 2025. Within the framework of the Export Initiative Energy, we are organizing a business delegation trip focused on building efficiency and renovation. Another key initiative is the delegation trip to Baden-Württemberg, organized on behalf of the IHK Export Academy Stuttgart, which will highlight Smart Cities and E-Mobility. As part of the Bavaria– Fit for Partnership program,we will focus on medical technology and health tourism. Additionally, we are preparing the 3rd Bavarian- Croatian Hydrogen Forum, bringing together key stakeholders from the energy sector. In the area of hydrogen technologies, we are also planning a delegation trip to the Netherlands and North Rhine-Westphalia (NRW) to explore new business opportunities and strengthen cooperation. Through these projects, we aim to support companies in their internationalization efforts, drive innovation, and promote sustainable economic growth between Germany and Croatia. We will also expand our chamber even further to become a business-2-business network for our member companies, on different levels and topics.
5. AHK is also known for taking care of its members and organizing many professional trips for German businessmen. How important is the exchange of experience and personal contact in business and how many of them have realized any concrete cooperation?
As a member-based organization and service provider, we offer the ideal platform for networking and collaboration. We cannot specify the exact number of successful cooperations. However, looking at 2023, in that year alone, we organized 17 delegation and study trips to Germany, Croatia, and other EU countries, each with a different thematic focus, attracting more than 230 participants. In addition, we hosted 49 professional and networking events with over 2,420 participants. At AHK Croatia, we strongly believe that the exchange of experience and personal contact are key drivers of successful business relationships. Our role goes beyond facilitating connections— we actively create opportunities for German and Croatian companies to engage in meaningful discussions, explore potential partnerships, and gain firsthand insights into new markets. Through our professional delegation trips, we provide German businesses with the chance to meet local industry experts, visit innovative companies, and learn about market-specific opportunities and challenges. - 6. There are many German companies in Croatia and they employ a large number of people. In which areas are German investors most interested and to what extent are these investments compatible with the needs of the German economy, and how much attention is paid to the compatibility of both markets?
Germany is one of the largest foreign investors in Croatia, with total German investments in the country amounting to nearly 5 billion euros as of mid- 2024. While investment flows were particularly strong in the post-COVID period until 2023, new investments in early 2024 were more modest, though several projects are currently in the preparation phase. German investors are primarily interested in sectors that align with both Croatia’s economic potential and Germany’s industrial needs. Key investment areas recently included manufacturing, renewable energy, automotive supply chains, and digital infrastructure. Notable projects in 2024 include Siemens Energy’s joint venture with Končar and Rheinmetall’s collaboration with DOK-ING. The compatibility of German investments with Croatia’s market needs is an important consideration. Germany relies on stable supply chains and high-quality production facilities, and Croatia offers a skilled workforce, EU integration, and an expanding infrastructure sector. At the same time, Croatia benefits from technology transfer, job creation, and increased competitiveness through German partnerships. Bilateral economic cooperation is well-aligned with the needs of both markets, particularly in green energy, industrial automation, and high-tech manufacturing, ensuring mutual benefits for German investors and the Croatian economy.
7. What would you highlight as the comparative advantages of Croatia compared to similar countries in the EU and the region and where do you see a good chance for further progress?
Croatia holds several comparative advantages compared to similar EU and regional countries, making it an attractive destination for investment and business development. One of Croatia’s strongest assets is its fast-growing economy, which has been among the fastest expanding in the EU. In 2024, the country’s GDP is projected by 4.1% year-on-year, outpacing many of its regional competitors. This is supported by strong consumer confidence, rising wages, and strategic public and private investment. Another key advantage is Croatia’s successful use of EU funds. The country has been a leader in utilizing EU Recovery and Resilience Funds, with approximately 4.5 billion euros already allocated and an additional 5.5 billion euros to be spent by 2026. These funds contribute significantly to infrastructure development, digitalization, and green energy projects. Croatia is also experiencing growth in high-value industries, including medical products, pharmaceuticals, and metal processing, with exports in these sectors increasing notably. For instance, exports of medical devices and pharmaceuticals rose by 16.6% in the first eight months of 2024 . Further progress can be achieved by addressing key challenges such as improving rail transport, strengthening legal certainty, and enhancing transparency in public procurement. Additionally, labor shortages in key sectors like construction and tourism could slow down longterm growth if not properly managed . By continuing to leverage its EU membership, increasing investments in high-tech industries, infrastructure and energy sector, Croatia is well-positioned to strengthen its role as a competitive logistics and energy hub in the region. As we look ahead to 2025, our focus is on promoting Croatia stronger in the following areas; renewable energies, digital transformation, infrastructure and construction, health, financial services and education and skills development. It is crucial to know which investments are investments in which values are created and anchored. This is how real resilience in economic relations is created. In these particularly turbulent times, this is of even higher importance.