"The fall in the GDP is not surprising, it is the result of the consequences of the wrong direction of the economic policy being pursued by this government," said HDZ parliamentarian Martina Dalic, a former finance minister.

She criticised the current government for providing few measures for strengthening the country's investments climate.

At a news conference which the HDZ club of deputies held in the parliament, Dalic said that she feared the negative trends would continue in 2013.

"The government must focus on structural reforms that stabilise expenditures and improve competitiveness", she said.

HDZ parliamentarian Domagoj Milosevic, added that "it is appalling that the number of the unemployed Croatians was growing amidst the best ever tourist season".

"Croatia definitely needs optimism but based on realistic pillars. We have a huge potential and it is time for those running Croatia to be able to exploit that potential, through long-term plans and not through tax burdens," Milosevic said.

Members of other opposition parties in the parliament joined in the criticism of the government of Social Democratic (SDP) Prime Minister Zoran Milanovic over the decline of the economic growth for the fourth consecutive quarter.

Labour Party leader, Dragutin Lesar, said that the negative growth of 1.9% in Q3 was expected having in mind the decreasing consumption and a lack of investments.

He told reporters that he expected similar developments in 2013 despite the government's projections of a positive growth of 1.8% based again the projected rising household consumption and a 11.5% rise in investments.

"The monetary authorities must finally be included in an attempt to salvage the economy and create jobs," Lesar said.

Drazen Djurovic of the regional HDSSB party, criticised the government for "complete incompetence in making any turnaround in the economic policy".

On the other hand, members of the ruling coalition conceded that there had not been enough investments but they ascribed that this was caused by the excessive time required to prepare projects as no projects had been prepared when this government stepped into office.

The entire optimism for the rising GDP in 2012 is based on investments, and they are the best quality element for GDP growth. However, there have been no state investments as their preparation has required time as no projects had been prepared. Investments were kick-started in this quarter, a month ago, and they will produce effects in 2013," said Dragica Zgrebec of the SDP.

In this period we have worked on the consolidation of the economy and rehabilitation of certain companies, she said.

Asked by reporters whether she believed that the negative growth of 1.9% would be the last, she said she hoped so.

The Croatian People's Party (HNS) parliamentarian Srdjan Gjurkovic said that the economic contraction was a result of the situation which was inherited from the previous government.

Following the restructuring of companies, the privatisation of shipyards and all laws we have adopted to facilitate economic development and growth, I believe that this is the last decline and that we are entering the new year with a positive GDP, he said.