"After months of declining GDP we are finally recording growth. It is modest, but it signals that we are heading in the direction we have announced for this year," Kosor said.

Croatia's GDP growth in the second quarter is similar to that of Italy, Great Britain's GDP growth is 0.7 percent, Romania's 0.3 percent, France's 1.6 percent, and Hungary's 1.2 percent, the PM said.

The commodities export in the second quarter grew 5.6 percent, the volume of industrial output increased 1.1 percent, retail sales went up 4.9 percent, the number of tourist arrivals grew 12.1 percent and the number of their overnight stays was up 12.5 percent, Kosor said.

She went on to say that preparations were under way for a big investment forum to be held in October and announced for next Monday a session of the commission in charge of the Brijuni Rivijera project, at which she said decisions would be made to invite international tenders for the project.

Kosor commented on her visit to Kosovo on Wednesday, during which she was accompanied by a delegation of business people from 45 Croatian companies, noting that she believed the visit would result in many new business deals.

She said the government was considering additional measures to help people facing distraint proceedings, adding that the government had already made it possible to exclude from property seizure two-thirds of a debtor's salary or pension, as well as maternity allowances, children bonuses and scholarships.