Croatia withstands rising global borrowing costs

Croatia is currently navigating the global trend of rising government borrowing costs with relative resilience. While yields on 10-year Croatian bonds stood at 3.59% on August 21, slightly below the Eurozone average of 3.65%, the cost of state borrowing is increasing worldwide. The US national debt has surpassed $40 trillion, and yields on 30-year US Treasury bonds have reached their highest since 2007. Similarly, French borrowing costs are at their highest since 2008, and German yields have climbed to 2011 levels.

Despite the global pressure, Croatia's borrowing costs have risen by 0.33 percentage points since the start of 2026, a smaller increase than the Eurozone average of 0.44 percentage points. Economic analyst Ivica Brkljača noted that Croatia is "holding up very well so far," suggesting the market does not perceive the country as excessively risky. He added that Croatia's position within the Eurozone, shielded by the European Central Bank (ECB), likely contributes to its stability.

Brkljača's analysis, presented in "Makro Pogledi," highlights that without Eurozone membership, Croatia's borrowing costs would likely be much closer to those of "leading" countries experiencing sharper increases. This suggests that membership in the Eurozone and the ECB's supportive role are crucial factors in mitigating the impact of global financial pressures on Croatia's national debt.