Fitch upgrades Croatia's rating to A-

By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings said Friday that it upgraded Croatia's long-term foreign currency issuer default rating to A-' from 'BBB+ with a stable outlook.

The rating agency said the upgrade reflects the country's robust economic growth, rising real wages and further integration with the core eurozone countries.

Fitch said it expects Croatia's real GDP to average 3.1% from 2024 - 2026 compared with our 1.3% forecast for the eurozone.

It forecasts general government debt to decline to 59.3% of GDP in 2024, from 63.1% in 2023.

"Debt reduction will continue beyond 2024, albeit at a slower pace, reflecting normalisation of nominal GDP growth and a gradual narrowing of primary budget deficits," it said.

"We forecast public debt/GDP to decline to 55.3% by 2028, in line with the peer median," it added.