"Next year, I believe, will be better. We expect growth and this is not a belief, the indicators say that, while this year is a time of consolidation. It was actually on us, as is always crucial in politics, to determine, together with economic and industrial policy experts, the hurdles in the system," he was quoted as saying in Tuesday's Jutarnji List daily.

Speaking of invitations for bids for large investments, he expects "everything to get going this year."

He said the Plomin thermal plant, the Rijeka Port, and the railways were the big projects, adding that it was necessary to remove "the stigma from Croatia that it is hostile to investments."

Voicing confidence that Croatia would not need the International Monetary Fund, Milanovic said "the situation in Croatia is tough but it isn't dramatic" and that "our banks are stable but passive."