Key View
- Even as austerity is progressively relaxed, Croatias fiscal position will not deteriorate substantially, thanks to solid growth in revenues. This will be underpinned by a strong private consumption outlook and a robust tourism sector.
- Solid real GDP growth and primary budget surpluses will improve the outlook for Croatias high debt burden over the coming years.
- At Fitch Solutions, we have lowered our budget balance forecasts. We now forecast fiscal surpluses of 0.2%, 0.1% and a deficit of 0.1% of GDP for 2019, 2020 and 2021.
Solid Revenues Helping To Balance Budgets
Croatia – Government Revenue and Expenditure Growth & Budget Balance
f = Fitch Solutions forecast. Source: Eurostat, Fitch Solutions
While Croatia has made s…
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