Standard & Poor's has reaffirmed Croatia's credit rating of BBB-, with a stable outlook. They estimate that our economy will shrink by eight percent this year, which is a better estimate than in May when a nine percent decline was projected. The government and economic experts consider this to be good news, while President Zoran Milanović believes that the ratings of ratings agencies are a thing of the past.
“Croatia's credit rating of BBB-, with a stable outlook, therefore maintaining the investment level of the credit rating, confirms that we have experienced the crisis caused by the coronavirus pandemic with a stable and resilient economy,” said the government in a statement. The statement went on to say that we adopted strong and timely measures to preserve jobs and for recovery of the economy.
“The new report by Standard & Poors is an important confirmation of trust in a continuation of implementation of the government's measures, with an aim for economic recovery as quick as possible,” said a statement by Prime Minister Andrej Plenković.
Minister of Finance Zdravko Marić emphasized the importance of confirming the investment rating with a stable outlook.
“You know that we as the government, already at the beginning of our last mandate, said that one of our strategic and general goals on the economic financial front was the return of Croatia to the zone of an investment credit rating. We targeted this by the end of our mandate, however this happened a little before the end of the mandate in 2019, which is a good thing because this is the place where Croatia needs to be and belongs,” said Marić.
Economic analyst Damir Novotny agrees that the BBB- credit rating with a stable outlook is good news for us.
“All this speaks of the economy being on the right path, that this crisis will be overcome relatively quickly, and finally we see that everything isn't only in tourism, that there are other sectors, especially these new technologies, in which investments will be made,” said Novotny.
“What Standard & Poor’s said is good for an impression, but those ratings by rating agencies are a thing of the past. At a time when money is practically free, their forecasts mean nothing, to me it is more important what we know and what information we have,” said Croatian President Zoran Milanović, adding next year should be a year of some recovery and growth if the situation with the coronavirus calms down.
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