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Zoran Milanovic pleaded for public patience on Thursday, saying the government had only just started to get to grips with the crisis.
Croatia's Prime Minister said the country was in recession, after GDP fell another 1.3 per cent in the first quarter of this year, continuing the fall from the last quarter of 2011.
He blamed the downturn on "a big fall in economic activity in industry, mining and energetics, transport and construction".
Minor growth in some other sectors had not been enough to compensate for these other losses, the Prime Minister said .
Industrial output fell by 9 per cent in the first quarter of 2012, which was more than expected.
"We will have to care of ourselves while awaiting recovery in Europe, on which we depend for some of our main economic branches," Milanovic said, noting the government's promises to start investments.
Milanovic pleaded for "reasonable patience", because "the government has just started the battle with this crisis".
The Hague Tribunal has been successful in bringing wartime commanders to justice but hasn’t met expectations on reconciliation, chief prosecutor Serge Brammertz told BIRN.