The COVID-19 pandemic has had a profound impact on the Croatian economy, resulting in significant contractions across various sectors. In the second quarter of 2020, Croatia experienced a staggering 15.1% decline in its GDP compared to the same quarter in the previous year, marking the largest quarterly drop since the beginning of quarterly GDP assessments in 1995. The pandemic's effects were particularly pronounced in key industries such as tourism, retail, and manufacturing, leading to a sharp decrease in economic activity. Restrictions on movement and the closure of businesses not only resulted in immediate financial losses but also affected the availability and quality of data used for evaluating economic performance. While there was some recovery observed after the easing of lockdown measures in mid-2020, the overall economic landscape remained fragile, with many sectors still struggling to return to pre-pandemic levels. In response to the economic fallout, the Croatian government implemented various measures aimed at stabilizing the labor market and supporting businesses. Policies such as wage subsidies and financial assistance for affected industries were introduced to mitigate unemployment and preserve jobs. However, the effects of the pandemic extended beyond immediate economic indicators; they also prompted discussions about the resilience of the economy and the need for structural reforms. The recovery process has underscored the importance of diversifying the economy and enhancing digital transformation to better withstand future shocks. Moving forward, Croatia faces the challenge of rebuilding its economy while addressing the underlying vulnerabilities exposed by the pandemic. The focus will likely be on creating a more sustainable and robust economic framework that can support growth in the face of global uncertainties.