The IMF said in its latest outlook, released earlier this week, that the Croatian economy would contract slightly this year and would recover only next year. It expects a considerably higher unemployment rate of 15.2% this year, compared to its previous projection of 13.3%, while next year unemployment should drop to 14.7%.

"It is necessary to attract investors, because that's the only way to create new jobs," Josipovic told the press in his office during a meeting with members of the public.

He said that the government should do all it could to ease the position of impoverished people.

When asked about the government's performance in light of the grim forecasts, Josipovic said that the government's plan for the strategic development of the country was aimed creating conditions for investment, expressing hope that it would be successfully implemented. "In the end, its results will be assessed by citizens at elections," he noted.

Responding to a question about the European Commission's criticism of the Strategic Investment Bill, Josipovic said that a bill aimed at improving the investment climate was necessary. "We must remove barriers that exist in our legislation and practices towards investment and job creation," he said, stressing that the details of the bill that were not in line with EU legislation would be modified.

Commenting on the forthcoming local elections, scheduled for May 19, Josipovic said that it was hard to say whether the low turnout for the European Parliament elections would affect the turnout for the local elections, given the poor interest in elections in general, and not just in Croatia.