Croatia's public debt falls for the first time in eight years, which is positively acknowledged by rating agencies
In December 2016 Croatia’s public debt fell for the first time in eight years to HRK 289 billion or 84.2% of Gross Domestic Product (GDP) thanks to good fiscal results and higher than expected economic growth.
2016 ended with a nominally lower debt on the year considering that overall public debt in December 2016 was HRK 505 million or 0.17% lower than for the same month last year.
The public debt to GDP ratio of 84.2% is well above the average for comparable countries in Central and Eastern Europe (53.9% of GDP) and Southeast European countries (47.7% of GDP).
Supported by Croatia's declining general government deficit, Standard & Poor's affirmed its 'BB' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Croatia, with a stable outlook. The agency expects domestic demand to remain strong.
Moreover, both Fitch and Moody's agencies also improved the outlook on Croatia's credit rating to stable from negative. All three leading rating agencies now keep Croatia's credit rating two notches below investment grade, with a stable outlook.
Jelena Bilusic
Head of Relationship Management
Jelena.Bilusic@unicreditgroup.zaba.hr