Speaking to the press, Grcic said development projects that would apply for European Union funding were expected to improve the investment activity and that a better absorption of pre-accession funds in the last six months should also have a positive impact on gross domestic product.

He said the good tourism results could also prevent the decline predicted by the central bank. He said projects would be launched by the end of the year and that Economy Minister Radimir Cacic was announcing for the last quarter the signing of projects worth about one billion euros.

Public companies must start investing in the second half of the year, too, which should calm the situation and perhaps even lead to a GDP growth, said Grcic.

Asked if the government had a new projection or still stuck to the one that GDP would grow 0.8 per cent this year, Grcic said things had not unfolded at the pace the government wanted and that it was to be seen if in the second two quarters the government would manage to make up for what it had planned in the first two.

Maras expects the second two quarters of the year to show the first results of what the government has been doing and GDP to rise, not decline. He also expects investments to grow.

He recalled the government's decision to invest HRK 2 billion of oil company INA's profits into refineries in Sisak and Rijeka.

Maras said the government's focus was on encouraging investments, as there was no growth or development without them.

He said there was no reason for companies such as the petrochemical company Dioki to be closed for nearly six months, adding that everything would be done for such companies to resume operating and exporting.