Fitch Ratings confirmed on 7 March Croatia’s ‘A-’ credit rating with a stable outlook, citing strong economic growth, fiscal discipline, and support from membership in the European Union (EU) and the eurozone, although it warned about the country’s small economy, weaker price competitiveness, and vulnerability to external shocks, Croatian media report. In a statement issued on Saturday, Prime Minister Andrej Plenkovic said that the confirmation of Croatia’s A- credit rating shows that Croatia is politically and economically stable and reliable for investment.“In conditions of numerous geopolitical challenges, this report also confirms that international credit rating agencies consider Croatia a politically and economically stable country that is reliable for investments. Strong economic growth, responsible management of public finances, and efficient use of European funds will remain the framework of the Government’s policy with the goal that Croatia continues to catch up in development with other EU member states,” Plenkovic said in his statement.Regarding the management of public finances, Plenkovic assured that the Government is committed to maintaining the deficit below 3% of gross domestic product (GDP), while the share of public debt in GDP has fallen to 56% of GDP, which is around 30 percentage points less than in 2020 and approximately at the average of countries with a rating in the A category.Plenkovic also reminded that through reforms and investments under the National Recovery and Resilience Plan (NPOO), Croatia has already received EUR 6.4 billion (64%) and is on track to absorb all available funds from the EU Recovery and Resilience Facility (RRF) by the end of 2026.Commenting on the Fitch credit rating confirmation, special adviser to the Prime Minister for the economy Zvonimir Savic said that Fitch Ratings expects Croatia’s economic growth to continue at slightly below 3%, with inflation slowing, while its forecasts largely match the Government’s projections and show Croatia performing better than some comparable countries with a similar credit rating.Meanwhile, Fitch Ratings confirmed Croatia’s ‘A-’ credit rating with a stable outlook, citing strong economic growth, fiscal discipline, and a credible institutional framework supported by membership in the EU and the eurozone.The agency stated that the rating indicates a low risk of debt repayment problems and expects Croatia’s public debt relative to GDP to stabilize in the medium term despite a projected increase in the budget deficit.Strong economic growth is expected to help Croatia continue converging with developed economies, although its external price competitiveness has recently weakened. At the same time, lower GDP per capita, weaker institutional capacity and governance compared with other ‘A’-rated countries, and the small size of the economy increase its vulnerability to external shocks.Fitch also noted that Croatia’s economic growth slowed to 3.1% in 2025 but remained above the eurozone and ‘A’-rated country averages, with growth expected to ease to 2.7% by 2027.Competitiveness, especially in tourism, has weakened as prices approach the EU average, while EU funds and higher EU spending on defense and infrastructure should continue to support the economy, Fitch predicted.Also, Fitch expects the budget deficit to rise slightly to 2.8% of GDP by 2027, while public debt fell to 56.3% of GDP in 2025 and should stabilize, with Croatia’s rating depending on future growth, competitiveness, and debt trends. (ICE ZAGABRIA)

Fonte notizia: HRT and Poslovni dnevnik online edition 07/03/2026