Plenković: Das Vertrauen der Kreditagenturen zeigt, dass Kroatien auf dem richtigen Weg ist

Prime Minister Andrej Plenković stated on Saturday that the trust of international credit rating agencies shows that Croatia is still on the right path after a strong economic recovery in 2021.

Plenković made this statement after the credit agency Fitch confirmed Croatia’s investment credit rating at BBB with positive growth prospects, which, according to the government, is a message of Croatia’s economic stability in the face of the consequences of Russian aggression against Ukraine, inflationary pressures, and other challenges.

During the current government, the trend was reversed, and in January 2018, Fitch restored Croatia’s credit rating to BB+, and then in June 2019 to BBB-. In Fitch’s assessment, as of November 13, 2021, the investment rating was raised another notch to BBB, with positive growth prospects, the government announced.

– The trust of international credit rating agencies shows that Croatia is still on the right path after a strong economic recovery in 2021. By implementing structural reforms and further utilizing European funds, we continue to stimulate economic growth – emphasized Plenković.

Additionally, he added that, as in all crises we have faced, the government strongly stands behind the citizens and is trying to help mitigate the rise in energy prices and inflationary pressures with a package of measures.

– Membership in the euro area next year will bring numerous benefits to Croatian citizens and the economy, while also helping Croatia to be more resilient to crises – he assessed.

According to the government statement, the positive outlook for future rating movements is also based on the belief that Croatia will be in a position to adopt the euro as its currency on January 1, 2023, as it meets the criteria and reform measures within the ERM II mechanism. Fitch considers a positive outcome of the assessment of Croatia’s compliance with the criteria for membership in the euro area this year to be very likely.

Fitch estimates GDP growth in 2022 at 3.3 percent, which is higher than the Ministry of Finance’s forecast of three percent, and expects GDP growth to accelerate to 3.7 percent in 2023, influenced by an increase in investments due to the use of EU funds, the statement said.