Credit rating agency Standard & Poor’s (S&P) has reaffirmed Croatia’s A- rating with a positive outlook, the Ministry of Finance announced on Tuesday.

In its analysis published on Monday night, S&P highlighted Croatia’s ongoing reforms and strong economic growth as key factors in maintaining steady income growth.

The agency projects that Croatia’s economy will grow at an average rate of 2.9% between 2025 and 2028, driven by strong tourism, investment, and recovering external demand.

S&P also noted that moderate fiscal consolidation will help reduce the budget deficit to around 2% of GDP by 2028, down from an estimated 2.6% in 2024.

As a result, the country’s general government debt-to-GDP ratio is expected to decline to approximately 51% by 2028, compared to 68% in 2022.

According to S&P, capital account inflows—primarily EU grants—and stable foreign direct investment will cover current account deficits, supporting ongoing debt reduction through 2028.

At the end of last week, Fitch Ratings also reaffirmed Croatia’s A- rating with a stable outlook, citing fiscal discipline and strong economic growth while noting the country's small economy remains vulnerable to external shocks.