Croatia Reaches Historic Credit Rating Milestone After Adopting Euro

Standard & Poor's has raised Croatia's credit rating from BBB+ with a positive outlook to A- with a positive outlook, as reported by the information portal dnevnik.hr and quoted by BTA. This marks the highest credit rating in Croatia's history, following the country's adoption of the euro on January 1, 2023.

Prime Minister Andrej Plenković commented that the upgraded rating will benefit citizens, businesses, and companies by enabling lower interest rates on loans and providing more favorable market conditions.

Employers believe that the improved credit rating will boost foreign investment by signaling that Croatia is a stable and attractive destination for investors. Irena Weber, CEO of the Croatian Employers' Association, emphasized that the rating influences the country's financial stability and the perceived risk of its economy. She expects significantly lower interest rates for both individuals and businesses compared to other European countries, noting that such conditions were once unimaginable for Croatia 15 years ago.

However, Weber stressed that further improvements in the credit rating will depend on continued tax cuts and reforms, particularly in the areas of justice and healthcare. She pointed out that healthcare contributions, which currently stand at 16.5%, are a significant burden on wages and should be addressed.