Abstract
Construction sector plays a significant role in GDP growth and economy development of Croatian economy and on European union level driven by growth of construction activities in last two decades. From 1980 until 2024 Croatian economy passed through transition process in order to become developed EU member in which construction sector currently contributes to Croatian GDP with 5% and contributes with 8% in total national employment. Paper provides analysis of construction sector movements from 2011 till 2024 explaining periods of growth, recession and recovery as well as period of COVID crisis. Conducting multiple regression analysis paper provides correlation between key performance indicators of construction sector like number of new apartments, number of issued construction permits, real estate price indicators and macroeconomic indicators. There is evidence of positive influence of between realized construction works and GDP growth. Additionally, construction sector demonstrated strong resistance to COVID crisis with positive contribution to post-COVID economy recovery as well as unemployment rate reduction.