Croatian government set to bring inflation below 2.4% next year

The Croatian government hopes to bring next year’s inflation below the 2.4% rate projected by the European Commission, Prime Minister Andrej Plenković said at a meeting of the Economic and Social Council in Zagreb on Monday.

Speaking of inflationary pressures, Plenković said that inflation was waningВ and reached 4.7% in November. “According to current forecasts, this should keep the annual inflation rate at 8% for this year.”

“With the inflation rate showing a tendency of further decline next year, we expect to reduce inflation below the estimate of 2.4% made by the European Commission,” the prime minister said.

Summing up his government’s achievements, he said that the public debt to GDP ratio was expected to fall to 60.7% this year and continue to fall towards 55% in the years ahead.

GDP is expected to grow by 2.8%, which is higher than any previous projections. “This means that the economy is in a much better state,” the prime minister said.

He announced further reductions in fuel prices, adding that this was good for households and for the economy.

Only country to have its credit rating raised by two notches by all three major agencies

Plenković said that in the present time of crisis Croatia was the only country in the world to have its credit rating raised by two notches by all three major credit rating agencies.

“This shows that the Croatian economy is resilient and dynamic. We have the highest credit rating yet, with a positive outlook, from all three agencies, and we have a chance to reach A ratings,” he added.

Speaking of 2024, Plenković said that it would be an election year in Russia, the European Union, the United States and in Croatia, “which makes the entire political, economic and social context additionally challenging.”

“However, we are entering next year financially, economically and socially much more consolidated after crises that have lasted basically throughout this term, and we have managed to preserve social cohesion,” the prime minister said.

He congratulated trade union leader Krešimir Sever on taking over the chairmanship of the Economic and Social Council as of next year.