After the national statistical office reported 1.9% contraction in Gross Domestic Product, Linic told reporters on Friday that the real sector had missed its chance created by the government through the reduction of taxes and other levies as well as by making liquid funding from banks available to the real sector.

Linic accused the real sector in the economy for lacking visions and its own projects, and said that the real sector was waiting only for state-launched investments.

If they (the real sector) do not have work for the state, they have no enough courage (for their own projects), the finance minister said after a conference on financial management and practical aspects of Croatia's accession to the European Union, which was held in Zagreb on Friday.

Accusing the real sector of passivity, Linic said that the government made it clear that it needed the real sector in the implementation of public investments in the energy sector and in the tourist trade.

Deputy Prime Minister and Regional Development and EU Funds Minister Branko Grcic said that the latest decline in the GDP in Q3 was objectively expected.

Europe saw a negative 0.4% growth in Q3 2012, and again returned to recession, which has a direct effect on Croatia that has suffered from decreasing exports and personal consumption, Grcic said.

Asked by reporters to comment on Linic's criticism of the real sector, Grcic said he would not seek culprits explaining that in his opinion the global crisis had affected Croatia.

The government must encourage investments, with assistance to the entrepreneurial sector alongside the public investments.

According to the statistical office, Croatia's GDP shrank by 1.9% in Q3 year on year, falling for four quarters consecutively. Croatia's GDP went down by 1.3% in Q1 2012, and by further 2.2 in Q2.