The world renowned financial ratings agency, Fitch Ratings, have upgraded Croatia’s economic situation as BB+ and expect a “healthy GDP growth.”
According to Fitch Croatia’s long-term financial position is no longer just stable but has improved significantly and can now be described as positive, a move that is sure to attract even more foreign investment into the country. They base their decision on the budget surplus, steady economic growth and low interest rates.
"The HDZ-led government coalition has proved resilient since July 2017, despite a slim majority with 77 out of 151 seats in parliament, but structural reforms may be challenging and a change in its composition cannot be ruled out,” stated the agency in a press statement.
They are mention the ever falling public debt. In 2017 the debt amounted to 77.5 percent of GDP, however that figure has fallen and Fitch predict that by the end of 2019 it will be down to around 71 percent.
Fitch forecasts Croatia's GDP growth of 2.6 percent in 2018 and 2.5 percent in 2019, on the back of "strong tourist arrivals, rising real earnings, tax cuts, accommodative monetary policy and a pick-up in EU project execution."