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Economic minister, Damir Polancec announced  last week that Croatia was keeping its economic growth forecast of 4.5 percent this year. He also said he expected to  increase this target further, to a level of 7% growth in the next 4 years, boosted by growth in technology and private business.

The government, at the start of its new 4 year term  in January, made an initial growth forecast of five percent but has revised it to 4.5 percent because of the turmoil in the World's financial markets and economic slowdown.

Analysts put it at around the same level, citing worsening global conditions and higher inflationary pressures, which should weaken private spending and state investments. Many Analysts believe that growth in excess of 4.5% will only be achieved by serious reforms in the public sector, health and education.

Croatia's economy has been growing at a rate of between 4 and 5 percent since 2000, driven by tourism, increased consumer spending and state investments.