Tuesday, 19 October 2021
Tourism saves economic outlook Tourism saves economic outlook Shutterstock

Successful tourism season in Croatia bolsters economic outlook

Written by  The Dubrovnik Times Sep 18, 2021

On Friday, Standard & Poor's reaffirmed Croatia's investment rating of 'BBB- / A-3', with a stable outlook, raising the growth rating of the Croatian economy this year thanks to the recovery of tourism from the effects of the Covid-19 pandemic.

Standard & Poor’s raised Croatia’s rating to ‘BBB- / A-3’ investment level in March 2019, with a stable outlook, and has not changed it since.

The agency has raised its estimate of Croatian economy growth this year from 5.1 per cent to 6.5 per cent, pointing to expected support for tourism recovering from the effects of the Covid-19 pandemic.

They also point out that the key goal of the government is the rapid adoption of the euro, after entering the Exchange Rate Mechanism (ERM II) in 2020.

They warn, however, that the pandemic has changed the trend of improving the budget situation from the previous period, estimating that public debt expressed as a share of GDP will not return to pre-crisis levels by 2025. In 2020, it reached a record 88.7 percent, according to their estimates.

 

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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