Debt collection in Croatia
The Croatian economy is booming but nevertheless, recovering credits for the creditor companies may still seem impossible
The Croatian economy is booming: according to the latest GDP data the economy shifted into a higher gear in the second quarter of the year, after a solid performance in the first quarter, driven mainly by sustained domestic demand.Instead, the second quarter expansion was sustained by the external sector, as exports of goods and services exceeded the growth in imports.
On the domestic front, private consumption fell a bit, but remained robust overall, strengthened by a shrinking labor market. In addition, the unemployment rate fell throughout the quarter and reached a new record low in June. Real wages also grew, increasing household purchasing power.
Analyzing the trend of the third quarter, the data released give an ambiguous picture: while consumer confidence improved in July, the business sentiment has become less optimistic.
Following this trend, the Croatian economy is expected to close 2018 with positive data, in line with the 2017 growth. A declining unemployment rate ( – 8,6% in July 2018) together with a strong tourist sector – supported by important investments to expand tourism capacity – should continue to underpin consumer spending in 2018.
GDP has grown steadily over the last 4 years in Croatia. In fact, in 2015 it recorded an increase of 2.3%, in 2016 a growth equal to 3.2%, last year +2.8% and the estimated growth of 2018 is +2.6% – according the World Bank forecast for Croatia. The main industries in Croatia are chemicals and plastics, machine tools, fabricated metals, electronics, iron and steel products, aluminium, paper, wood products, construction materials, textiles, food and beverages, turism.
Therefore, Croatia imports mainly from Germany (16.1% ), Italy (12,6%), Slovenia, (10.9% ), Austria (7,9%), Hungary (7.1%), Netherlands (3,9%) and Poland (3,5%).
With regard to foreign trade, both Croatian imports and exports have increased. Imports have grown by $ 21.2 billion in the last year and the most imported goods from Croatia to the rest of the world are:
- Mineral fuels including oil
- Electronic equipment
- Iron and steel products.
So, foreign companies that export to Croatia must take into consideration different elements such as Opportunity and Country Risk but they should also analyze the Justice system or the Opportunity and Risk Courts.
Efficient justice and economic growth, the length of the legal proceedings and the number of Judges per Court are representative criteria also for Debt collections.
For this reason many creditor companies, every day choose the extrajudicial procedure – which is faster and less expensive compare to the legal approach – to recover credits.
Therefore, even the debtor companies of Croatia rely on Invenium, one of the largest specialized International debt collection entities.
With more than 3,000 customers in Europe, 10.000 cases and 73 million receivables managed in the last two years, Invenium is the right choice for any company seeking effective results.
Invenium, for several years, supports in the recovery of credits the extrajudicial approach. Especially, the amicable settlement allows to resolve, in short times, conflict situations between debtors and creditors also facilitate their business relationships.