March the 20th, 2025 – Good news as S&P (Standard and Poor’s) has confirmed its A- rating for Croatia, with a positive outlook going forward.
Despite the belief that the Croatian economy is set to experience a slowdown this year after being the fastest growing in the entire Eurozone for a considerable amount of time, S&P’s latest rating for Croatia has provided some reassurance.
As Poslovni Dnevnik writes, S&P has affirmed Croatia’s A- credit rating with a positive outlook, the Ministry of Finance reported this week.
In an analysis published on Monday evening, Standard & Poor’s said that Croatia’s ongoing reforms and strong economic growth will help maintain stable income growth as we go forward. It also estimates that the Croatian economy will grow relatively strongly, averaging around 2.9 percent over the period from 2025 to 2028. That will primarily be owing to strong tourism, various investments, and a marked recovery in external demand.
The S&P agency has added that moderate fiscal consolidation will help reduce the Croatian budget deficit to around two percent of GDP by the year 2028 from an estimated 2.6 percent, the estimate for this year.
It has stated that this will lead to a decline in the general government debt ratio to around 51 percent of GDP in 2028, given that it stood at 68 percent back in 2022.
