Croatia is opening up to Czech companies as a stable European Union market investing in infrastructure, energy, water management, digitalisation and services. This interview explores specific opportunities for Czech business, Croatia’s strategic position as a gateway to South-Eastern Europe and the importance of Czech-Croatian cooperation in energy security. Petr Gandalovič, the Czech Ambassador to Croatia, discusses economic relations, investment and his experience in diplomacy.
While many Czechs view Croatia primarily as a holiday destination, how would you present it as a viable commercial market to Czech entrepreneurs who have not yet explored its economic potential?
While Czechs typically associate Croatia with the Adriatic coast, it has evolved into a fully established EU market backed by the euro and a stable institutional environment. Its economy, though small, is very open and has maintained solid annual growth of approximately 2.5 to 3.5 per cent in recent years. On the other hand, this growth is accompanied by relatively high inflation of around four per cent.
Strategically situated between Central Europe, the Balkans and the Mediterranean, Croatia has wider regional significance. Czech companies should recognise it as a fast-evolving country that is investing in infrastructure, energy, digitalisation and public services. Its cultural proximity to the Czech Republic, combined with the strong local reputation of Czech businesses, makes it an accessible and familiar market.
With trade between the two nations steadily expanding, what are the key sectors currently offering opportunities for Czech exporters? Furthermore, where does the “Czech brand” already carry significant weight in the Croatian market?
Trade between the Czech Republic and Croatia has been growing in recent years and now amounts to tens of billions of Czech crowns annually, with the Czech Republic maintaining a long-term trade surplus with Croatia. However, from a macroeconomic perspective, this trade surplus is partially offset by the very strong influx of Czech tourists to Croatia, which represents a significant flow of funds in the opposite direction.
Currently, the most promising opportunities lie in the energy sector, specifically renewables and grid upgrades, as well as in transport infrastructure, water management, construction and digitalisation. Czech companies have long held a strong position in the Croatian market, particularly in engineering, the supply of technological systems, energy and transport solutions. Croatian partners view them as reliable businesses capable of delivering high-quality projects on schedule. This provides a distinct competitive advantage.
The country is investing in infrastructure, energy, water management and environmental projects. Where do you see opportunities for Czech technologies, suppliers and engineering companies?
Croatian investments in infrastructure, energy, water management and environmental projects offer clear opportunities for Czech technologies, suppliers and engineering firms. The Czech economic presence has evolved beyond simple exporting to include a strong investment component.
For example, the PPF Group is active in media through its subsidiary CME, which owns and operates the Croatian television broadcaster RTL Hrvatska, and in electronic tolling through ITIS Holding, another PPF subsidiary that is currently building a new tolling system in the country to replace toll booths from next year; the J&T Group is active in finance and energy, and industrial cooperation also plays a significant role. One example is Đuro Đaković, where Czech capital is involved in the restructuring and development of production capacity. These cases show that Czech companies can not only supply technologies in Croatia, but also invest for the long term and participate in the transformation of key sectors.
Croatia lies at the crossroads of Central Europe, the Balkans and the Adriatic. Could it become not only a target market for Czech companies, but also a gateway to the wider region of South-Eastern Europe?
Croatia’s geography makes it both a valuable market for Czech firms and a key entry point for expansion into the rest of South-Eastern Europe. The combination of EU, eurozone and Schengen membership with a stronger legal and regulatory framework makes it a suitable base for expansion into the Western Balkans.
Companies that gain experience and contacts here can relatively easily expand their activities into countries such as Bosnia and Herzegovina or Montenegro. Furthermore, Croatia’s ports and logistics infrastructure reinforce the country’s role as a key transport hub.
A major issue for the European economy is energy security, the diversification of supply routes and the interconnection of infrastructure. What role can Czech-Croatian cooperation play in this, for example, within the Three Seas Initiative?
In the context of energy security and European efforts to diversify supplies, Czech-Croatian cooperation is becoming increasingly important. The LNG terminal on the island of Krk is a key element in ensuring the energy security of Central Europe, including the Czech Republic. Energy network interconnections and infrastructure projects within initiatives such as the Three Seas Initiative open up opportunities for further cooperation in gas, electricity and new technologies.
Another significant milestone was the recent Three Seas Initiative summit in Dubrovnik, which confirmed the region’s growing role and concrete progress in projects focused on infrastructure and energy connectivity. This is an area where the economic and strategic interests of both countries naturally converge. Croatia hosted the summit on 28 and 29 April 2026.
You have experience from the United States and the OECD, environments where there is much discussion of competitiveness, innovation and investment. How do you intend to use this experience to support Czech companies in Croatia?
I intend to use my experience from working in the United States and the OECD primarily to emphasise economic diplomacy and actively support Czech exports and investment. At the same time, Croatia is continuing its accession process to the OECD, which, once completed, would further strengthen the quality of the institutional environment and investor confidence.
In these environments, it is clear that the key to success lies not only in the quality of the product or service, but also in the ability to work strategically with the market, forge partnerships and make use of available financial instruments. My aim is to help Czech companies navigate the Croatian environment more effectively, identify specific projects and establish long-term relationships, rather than merely one-off business contacts.
Czechs are among the largest groups of foreign visitors to Croatia. Can this strong human connection be built upon to foster deeper economic cooperation, for example, in tourism, healthcare, services, or real estate and development projects?
The strong presence of Czech tourists in Croatia provides a major opportunity to deepen economic relations. There is a natural sense of trust and familiarity with the country that can be built upon in many areas.
In addition to traditional tourism, these include investment in the hotel industry, the development of health and spa tourism, higher-value services, and real estate and development projects. This strong human connection between the two countries is a unique asset that can make it considerably easier for Czech companies to enter the market and sustain long-term cooperation.
