Croatia’s economic stability took a small step forwards as the rating agency Fitch raised the rating from BB to BB+ on Friday. Thanks to stable economic growth, a strong tourist season and improving public finances, Croatia’s credit rating has improved for the first time since 2004 and now stands a BB + with “stable prospects.”

"This is great news. We are only one step behind the ranking of “investment rating.” The government’s goal is an economic plan that will bring fiscal consolidation,” commented Croatian Prime Minister, Andrej Plenković, on Friday.

In the new report, Fitch points out that economic growth remained at 3% in 2017, as Croatia benefited from increased EU funding, strong tourism as well as tax reforms. Growth should remain around this level over the next period due to solid labour market dynamics and an increase of EU funds. Fitch expects that inflation should remain low in 2018.

The agency pointed out that, despite improvements, the growth of the economy is still slow compared to comparable countries, reflecting structural economic weaknesses, low investment levels and unfavourable demographic trends.