AGP Executive Report

Tourism: Croatia recorded 4.8 million arrivals and 26.9 million overnight stays in August, with Germany the biggest foreign market and Rovinj the top destination. The country has now passed 20 million tourist arrivals this year. Energy: A €35 million grant will fund geothermal wells in Velika Gorica, Osijek, Vinkovci and Zaprešić, as Croatia targets heating public buildings with geothermal energy by 2030. Investment: Backers say the planned €50 billion Pantheon data centre in Topusko remains on schedule, with construction due to start in 2027 and operations targeted for 2029. Growth and costs: Croatia’s economy is set to exceed €100 billion for the first time, while producer-price inflation has risen to 8.6%. Infrastructure: Croatia has signed a €677 million contract to double-track a key freight corridor. Rimac is also moving into AI data-centre infrastructure, combining its battery and power-electronics technology with modular data-centre plans.

Economic Outlook: Croatia is on course to pass €100 billion in GDP for the first time. Producer-price inflation has climbed to 8.6%, while households face higher winter bills, including a reported 92% jump in extra-light heating oil prices. Tourism: The country recorded 20.1 million arrivals and 104.9 million overnight stays through September, up 2% and 1% year on year; foreign visitor receipts rose nearly 5% in the first half to €4.59 billion. Investment and Industry: A €677 million contract will double-track a key freight corridor, while Rimac is targeting AI infrastructure with modular data centres. South Korea’s HD Hyundai has also signed a strategic teaming agreement with Croatia’s Iskra shipyard. Trade and Business: Croatia ranks third in the EU for foreign-controlled businesses, and Zagreb and Washington aim to resolve their double-taxation issue by year-end.

Tourism: Croatia recorded 20.1 million arrivals and 104.9 million overnight stays through September, up 2% and 1% year on year. Foreign-tourist revenue reached €4.59 billion in the first half, nearly 5% higher. Household Costs: Heating is getting pricier: firewood costs about 10% more than last year, electricity 15% more and heating oil 92% more. Public Investment: Split is set to receive €54.5 million in government funding to upgrade three sports facilities, part of a €72.7 million programme. Economic Outlook: Croatia’s economy is expected to exceed €100 billion for the first time. Producer-price inflation, meanwhile, climbed to 8.6%. Transport: Croatia signed a €677 million contract to double-track a key freight corridor, while its new motorway toll system faces further delays. Industry: South Korea’s HD Hyundai and Croatia’s Iskra Shipyard have agreed to cooperate on multirole corvettes. Rimac is also targeting AI infrastructure with modular data centres.

Tourism: Croatia recorded 20.1 million arrivals and 104.9 million overnight stays through September, up 2% and 1% year on year. Foreign-tourist revenues reached €4.59 billion in the first half, nearly 5% higher. Economic Outlook: GDP is forecast to top €100 billion this year, with growth of 2.3%–2.4%; revised budget plans also narrow the projected deficit. Foreign Investment: Foreign-controlled firms make up 5% of Croatian businesses, the EU’s third-highest share, Eurostat says. Across the bloc, such firms account for 16% of employment and 24% of value added. Industry and Energy: South Korea and Croatia are looking to expand defence cooperation into industry and technology after a €477 million Chunmoo rocket-system deal. Croatia has also signed a €35 million grant agreement to drill geothermal wells at four sites. Trade: The US ambassador says the countries could ratify a long-delayed double-taxation treaty by year-end, easing cross-border business. Transport: Croatia has signed a €677 million contract to double-track a key freight corridor, while Split is set to receive €54.5 million in government funding to upgrade three sports facilities.

Economic Growth: Croatia is forecast to surpass €100 billion in nominal GDP this year, with growth of 2.3%–2.4%. A revised budget lifts revenue to €36.6 billion and spending to €40.6 billion, trimming the projected deficit by €108 million to €4.016 billion. Tourism: Croatia recorded 20.1 million visitor arrivals and 104.9 million overnight stays in the first nine months of 2026, up 2% and 1% year on year. September arrivals and overnight stays each rose 3%. Business Climate: Croatia and the US could ratify a long-delayed double-taxation agreement by year-end, easing cross-border business. Eurostat data show foreign-controlled companies make up 5% of Croatian market businesses—the EU’s third-highest share. Infrastructure: A procurement setback has put the planned March 2027 launch of Croatia’s new toll system in question. Separately, a €12.34 million air traffic control centre near Zadar Airport is moving toward contractor selection.

Growth and Inflation: Croatia’s GDP is expected to top €100 billion for the first time in 2026, with growth forecast at 2.3–2.4%. But inflation remains a pressure point: producer prices rose 8.6% in September, while consumer inflation was 4.7% and energy prices jumped 20.5% year on year. Rimac’s AI Push: Rimac Technology and ECOBLOX are developing a modular data-centre system using Rimac battery and power electronics. A demonstration unit is due at the Rimac Campus near Zagreb in November. Shipbuilding: South Korea’s HD Hyundai has teamed up with Iskra Shipyard on Croatia’s multirole corvette procurement and possible future naval projects. Freight and Trade: Croatia signed a €677 million contract to double-track a key freight corridor, while Rijeka’s Adriatic Gate terminal has reached four million TEUs. Connectivity: Croatia Airlines will launch Zagreb–Madrid winter flights for the first time, expanding year-round links.

Growth and Prices: Croatia’s GDP is forecast to top €100 billion for the first time in 2026, with growth of 2.3–2.4%, Prime Minister Andrej Plenković said. But inflation remains a pressure point: producer prices rose 8.6% year on year in September, their fastest increase in three and a half years. AI Infrastructure: Rimac Technology and ECOBLOX are developing a modular data centre using Rimac batteries and power electronics; a demonstration unit is due at Rimac’s campus near Zagreb in November. Shipbuilding: South Korea’s HD Hyundai has teamed up with Croatia’s Iskra Shipyard to pursue a multirole-corvette contract and explore wider naval projects. Rail Investment: Croatia signed a €677 million contract to double-track the 83-kilometre Dugo Selo–Novska line, with construction expected to start in 2027 and EU funds covering 90% of the wider project cost. Motorway Tolls: The rollout of electronic tolling has hit another snag after state road operator HAC cancelled a tender for the system’s digital platform, saying none of the three bids was valid.

Pay and Living Costs: A new survey found 75% of Croatians believe a dignified salary starts at €2,000 a month, far above the current minimum wage. Tourism: Croatia recorded another successful season, but last-minute bookings are becoming the norm as visitors watch prices more closely. Ports and Industry: Rijeka’s Adriatic Gate terminal has handled 4 million TEUs, strengthening the port’s regional role. Rimac Technology is also partnering with ECOBLOX to bring Croatian battery and power-electronics expertise to AI data centers. Investment: Croatia is offering citizens up to €9,000 toward electric-car purchases, while domestic shipyards are teaming with international defense firms to compete for a major navy corvette contract.

AI Infrastructure: Rimac Technology is teaming up with ECOBLOX to develop modular data centres, combining Rimac’s batteries and power electronics with infrastructure designed for energy-hungry AI computing. Sports Technology: Croatian-founded Sofascore has signed a multi-year global partnership with the NHL to build live statistics and visualisations using the league’s player and puck-tracking data. Shipbuilding: South Korea’s HD Hyundai Heavy Industries and Croatia’s Iskra Shipyard have agreed to work together on Croatia’s multirole corvette programme, with plans for broader naval industry cooperation. Trade and Logistics: Rijeka’s Adriatic Gate terminal has passed four million TEUs handled, reinforcing the port’s role as a regional cargo hub.

Croatia’s Waste Cleanup & Enforcement: In Gospić, about 650 tonnes of non-hazardous waste from the former PPK Velebit industrial site has started being removed and shipped in 300 large bags to cement plants in Koromačno (Istria) and Našice (Slavonia) for use as alternative fuel, as part of a wider USKOK probe into illegal waste imports and disposal. Transport & Trade: Rijeka’s Adriatic Gate Container Terminal (AGCT) and ICTSI’s Croatia unit both hit the 4 million TEU milestone, underlining the port’s growing role as an Adriatic gateway for Central and Southeast Europe. Mobility Rules: Croatia is considering tighter electric scooter requirements, including registration, compulsory insurance and periodic technical checks, after safety concerns and a recent Dugo Selo accident involving minors. EU Defence Innovation: The EU Parliament backed the €115m AGILE programme to speed defence technology innovation for SMEs and start-ups, with fast-track grants and testing/certification support. Wine Tech in Croatia: Umag-based M.G. Solutions launched WorldWineryMap.com, mapping 4.3m vineyards and 100,000 wineries worldwide, including 53,000 vineyards in Croatia. Business Travel & Connectivity: United Airlines announced 18 new/returning routes from Newark, with Croatia (Split) among the European additions.

Waste & Enforcement: Croatia’s anti-corruption probe linked to illegal dumping near Gospic moves from investigation to cleanup, as about 650 tonnes of bagged non-hazardous waste from the former PPK Velebit site start being shipped to cement plants in Istria and Slavonia for use as alternative fuel. EV Incentives: Croatia is rolling out a new state scheme offering citizens up to €9,000 toward new electric cars (up to 40% of price, with higher-price models excluded) plus up to €2,500 for certain electric two-wheelers, with a call expected in October. Urban Mobility Rules: Traffic experts in Zagreb propose tougher electric scooter rules, including registration tied to owners, compulsory insurance and periodic technical checks, after a recent crash involving minors highlighted safety gaps. Port & Trade: Adriatic Gate Container Terminal at Rijeka hits 4 million TEUs since joining ICTSI in 2011, underlining the port’s role as a regional Adriatic gateway. EU Defence Innovation: The EU Parliament backs the €115m AGILE programme to speed defence tech innovation, targeting fast grants for SMEs and start-ups. Wine Tech: A Croatian firm launches WorldWineryMap, mapping 4.3m vineyards and 100,000 wineries worldwide, with parcel-level data for users. Business Travel & Services: SAS EuroBonus expands status matches for elite members across major airline alliances, while Croatia’s tourism and mobility ecosystem also sees new transport ticketing changes (ZET) and more connectivity announcements.

Croatia Energy Push: Croatia’s Agency for Hydrocarbons (AZU) is preparing four deep geothermal wells in Velika Gorica, Osijek, Vinkovci and Zaprešić to expand urban district heating with production-injection pairs, in a project estimated at €35.15m (ex VAT). Public Procurement Watch: Croatia’s Ministry of Economy has appealed the Zagreb Maksimir Stadium and SRC Svetice competition outcome to DKOM, arguing the procedure may not have been applied equally to all 88 competitors and that key conditions may not have been met. Animal Welfare Pressure: Croatia has about 1.13m dogs and cats (estimates for 2024), while advocates warn enforcement is weak and call for a more effective specialised inspection system. Regional Politics: Bosnia’s election results point to stronger nationalist positions and a pro-Russia leader’s rise, raising fears of renewed instability and slower EU progress. Business & Tech: Notey closed a €3m seed round and is expanding across the Balkans via a distribution partnership with Telemach; Sofascore also announced a multi-year NHL tie-up, with Croatia-based Sofascore set to deliver next-gen hockey stats.

Geothermal Push: Croatia is preparing four new deep geothermal wells for urban heating in Velika Gorica, Osijek, Vinkovci and Zaprešić, with the AZU planning a €35.15m turnkey project to drill production-injection pairs and cut fossil-fuel dependence. Maksimir Stadium Legal Twist: Croatia’s Ministry of Economy has appealed the competition results for Zagreb’s new Maksimir Stadium and SRC Svetice complex to DKOM, arguing the procedure may not have been applied equally and that the winning proposal could differ from key conditions. Port Growth in Rijeka: Adriatic Gate Container Terminal (ICTSI) reached 4 million TEU handled since 2011, adding €35m equipment and moving toward lower-emission yard operations. Tourism Revenue Lift: September delivered a strong boost for Croatia’s accommodation and hospitality receipts, led by Istria (+~26% YoY), while Zagreb saw more stays but weaker revenue growth. EU Budget Fight: Seventeen EU countries, including Croatia, urged the Irish EU presidency to protect cohesion and farm funding in the 2028–2034 budget. Bosnia Election Fallout: Bosnia’s nationalist parties gained ground in the Oct. 4 vote, with preliminary results showing a Bosniak moderate, a pro-Russian Serb nationalist and a Croatian nationalist leading the tripartite presidency races. Business & Trade: Wolf Theiss opened a London office to deepen ties with CEE/SEE investors and corporates, while EU customs reported major counterfeit seizures worth €17.4m, including fashion and beauty goods.

EU Budget Fight: Seventeen EU states, led by Italy and Romania, are pushing back ahead of the 15–16 October summit to protect cohesion and farm funding in the 2028–2034 budget, warning cuts would hit citizens, farmers and local economies. Croatian Tourism Pulse: Croatia’s September tourism looks stronger than expected, with accommodation and hospitality receipts up year-on-year—especially in Istria (+~26% to about €105.7m), while Zagreb saw more bookings but weaker revenue growth. Public Transport Modernisation: Zagreb’s ZET plans contactless ticketing across its network in 2027, letting riders tap bank cards, phones or smartwatches to buy single journeys and simplifying ticket checks. Croatia–Armenia Business Ties: Armenia’s ambassador met Croatian economic officials and the Chamber of Economy to discuss deeper trade and export diversification, including EU-backed autonomous trade measures. Regional Watch (Bosnia): Bosnia’s election results point to continued ethnic-party dominance, with Milorad Dodik’s SNSD leading in Republika Srpska and turnout reported around 41.5%, keeping EU-stability concerns front and center.

Croatia’s Energy Rules: A new electricity consumption threshold kicks in from 1 Oct to 31 Mar 2027: households paying regulated tariffs will face a 35% higher charge only on usage above 3,000 kWh for the whole six-month period—important for anyone heating with electricity. Croatian Economy & Policy: The government adopted a new national framework to develop the bioeconomy, setting up a coordination body and a 2027–2035 plan with an action roadmap for 2027–2030 across agriculture, forestry, fisheries, aquaculture, energy and biotech. Transport & Daily Life: Zagreb’s ZET is rolling out contactless ticketing—tap a bank card, phone or smartwatch on validators to buy single tickets, with full network implementation expected in summer 2027. Tourism Connectivity: Jet2.com will launch a direct weekly Pula–Edinburgh flight from May 2027, boosting Istria’s links with the UK market. Agriculture Watch: Authorities renewed warnings about grapevine flavescence dorée, urging owners to monitor, remove and destroy infected vines and control the insect vector. Regional Politics (Business Impact): Bosnia’s general election closed with about 3.4 million voters; turnout and early results were still unclear amid economic slowdown, EU-accession delays and ethnic tensions, with new digital voting tech causing some polling disruptions.

Croatia–EU Budget Fight: Seventeen EU leaders, including Croatia, urged Ireland’s EU presidency to protect farm funding plus Cohesion Policy and the CAP in the 2028–2034 budget, warning cuts would “weaken” the EU and undermine support. Croatia Environment & Health: Locals in Lika fear years of illegal hazardous waste dumping near Gospić have caused lasting damage, as cleanup plans have dragged and residents say no waste has been removed yet. Croatian Waters Under Pressure: A Copernicus Marine report flags concerning, potentially irreversible changes in Croatian waters and the wider Mediterranean, citing faster warming and more marine heatwaves. Energy & Industry: Croatia’s LNG terminal is positioned to supply Germany within two years under a new energy plan, while Adriatic Gate/ICTSI container milestones underline growing port activity in Rijeka. Business & Tech: Rimac Group appointed a new CFO, and Croatia’s inflation hit 4.7% in September as energy prices rose sharply. Sports With Business Angle: England’s 7-0 Nations League win in Rijeka and the wider Manchester City financial-rules fallout dominated headlines around the match.