ENTERPRISES IN CROATIAN CONSTRUCTION SECTOR – NEW CHALLENGES AND POSSIBILITIES

ABSTRACT

The construction sector in Croatia generates around 5% of Croatian GDP directly, which situates Croatia in the group of European Union (EU) countries with the highest percentages of the sector in the gross domestic product (GDP). The percentage is even higher if it is considered its indirect impact through business activities for which it created the infrastructure. The importance of the sector is also seen through the number of employees in the sector that makes a percentage of 8% in total employment in the country. In the 20 years period the construction sector in Croatia has been through different stages characterized by ups and downs as the reflection of the situation on European and global market, but in the lastfew years before the COVID - 19 pandemics, it has shown signs of recovery after the global crisis. So, the aim of this paper is to compare the business activity differences regarding the number of enterprises in construction sector, the number of their employees and financial performances, in pre COVID - 19 year and during COVID - 19 years. The analysis will be made using the data from Croatian Financial agency (Financijska Institucija - FINA). Furthermore, the article will also analyse the situation in the selected construction firms in Croatia in the mentioned period. The presumption is that the COVID - 19 pandemics did not have a negative impact on the construction sector in the selected period because of its specific characteristics. Taking in consideration the events that occurred in Croatia in the last few years, that were conditioned by human or nature factors which increased demand for construction services, should also confirm the presumption. Recommendations for enterprises and entrepreneurial environment improvement are given according to the results.