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ZAGREB, May 7, 2022 – The confidence of international credit rating agencies shows that Croatia has remained on track after a strong economic recovery in 2021, Prime Minister Andrej Plenković said on Saturday.
His statement comes after Fitch Ratings reaffirmed Croatia’s investment rating at BBB with a positive outlook.
The government sees this as an indication of the country’s economic stability while dealing with the aftermath of Russia’s military invasion of Ukraine, inflationary pressures and other challenges.
The trend has reversed under the current government. Fitch restored the credit rating to BB+ in January 2018 and to BBB- in June 2019. On November 13, 2021, the agency upgraded the rating another notch to BBB with a positive growth outlook, the government said. in a press release.
“The confidence of international credit rating agencies shows that after a strong economic recovery in 2021, Croatia remains on the right track. We continue to stimulate growth by implementing structural reforms and making greater use of financing from the EU,” Plenković said.
He noted that in all the crises so far, the government has stood firm with the citizens, helping them with policy packages to mitigate the impact of rising energy prices and inflationary pressures.
“Joining the euro zone next year will bring many benefits to Croatian citizens and businesses while making the country more crisis-resistant,” the Prime Minister said.
The government statement indicates that the positive outlook is based, among other things, on the assumption that Croatia will be able to adopt the euro as legal tender on 1 January 2023, given that it meets the criteria and measures for reform under the ERMII mechanism. Fitch highly regards it as a positive outcome for Croatia’s entry into the Eurozone this year.
Fitch projected Croatia’s growth rate for 2022 at 3.3%, higher than the 3.0% forecast by the Ministry of Finance, and expects growth to pick up to 3.7 % in 2023, which would boost investment through the use of EU funding. , the government said.
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