Following the credit ratings agency Standard & Poor’s (S&P) upgrade of Croatia’s rating on 13 September, the credit ratings agency Fitch Ratings also upgraded on 20 September Croatia’s rating from ‘BBB+’ to ‘A-’, with a stable outlook, highlighting its economic resilience, the reduction of public debt, and the “continued integration into the core group of eurozone countries,” Croatian media report.Croatia's ratings “reflect its credible policy framework supported by its European Union (EU) and eurozone membership,” Fitch explained and added that “fiscal discipline and commitment to fiscal rules” will support Croatia’s debt reduction in the next four years.However, Fitch warned that Croatia’s gross domestic product (GDP) per capita will be lower than that of comparable countries, and its small economy is vulnerable to external shocks.Croatia's GDP per capita reached 76% of the EU average in 2023, Fitch emphasized, adding that by mid-2024 its real GDP was 19% higher than pre-coronavirus (COVID-19) pandemic levels, ranking it at the top of the EU.Fitch projected Croatia's real GDP to grow by 3.1% annually from 2024 to 2026, driven by strong domestic demand, household consumption, and EU funds, surpassing eurozone averages, and adds that Croatia is leading in the absorption of funds from the European Recovery and Resilience Facility (RRF).Fitch forecast that Croatia’s public debt will decrease to 59.3% of GDP by 2024, aligning with 'A' rated countries by 2028, while meeting all Maastricht criteria in 2024.Croatia’s rating could be upgraded again if, in the medium term, its GDP per capita and governance indicators align more closely with the median of countries in the ‘A’ rating group, Fitch announced, but warned that if economic growth significantly slows or public debt increases, the rating could be downgraded.Meanwhile, the Government issued a statement on Saturday citing Plenkovic, who emphasized that “in one week, two of the world's three leading credit rating agencies upgraded Croatia's credit rating to A-,” quotes.Plenkovic noted that Croatia progressed from a non-investment grade rating to an A-category credit rating “in record time,” demonstrating that it is perceived by rating agencies as “a reliable and credible country” with a strong economy and well-managed public finances.Croatia is among a small group of countries with "above-average credit quality," Plenkovic stated, adding that political stability will continue to support its strategic achievements and policies.According to both Fitch and S&P, Croatia has a higher credit rating than Italy, Bulgaria, Hungary, Romania, and Greece, Plenkovic stressed, adding that both agencies consider Croatia the fastest-improving country in terms of credit rating. (ICE ZAGABRIA)

Fonte notizia: HRT online edition 20/09/2024