Croatia experienced four recessions that had a significant impact on the country's economic development. The first recession was a transitional recession, caused by the process of transition from a planned to a market economy system, along with additional problems caused by the Homeland War. The subsequent transitional recession is associated with the banking crisis and events such as the Russian budget crisis and NATO's actions in Kosovo. The global financial crisis of 2008 also had a significant impact on Croatia, while the latest recession caused by the COVID-19 pandemic presented a special challenge. Healthcare, tourism, services, construction and manufacturing were particularly affected. The pandemic has strongly affected the Croatian economy since mid-March 2020. GDP has experienced a dramatic decline, especially in tourism, trade and industry. The recovery is gradual, but the level of activity is still lower than before the pandemic. Since March 2020, overnight stays by foreign tourists have decreased, industrial production has declined, and household consumption has fallen. Trade flows decreased, investments fell, but signs of recovery appeared. The number of company registrations and open bankruptcies shows recovery during 2022. Despite this, the pandemic had a significant negative impact on the Croatian economy. It is important to note that some companies have successfully switched to online business methods, while others, such as travel agencies and transport companies, have been more severely affected. Croatia is sensitive to external shocks, and the recovery and stability of the economy depend on broader economic trends and the international context. The government has taken measures to mitigate the negative consequences, and financial support also comes from European Union funds.