GDP growth in the third quarter is forecast at 3.5 percent.
Despite the increased forecast, Croatia will have to wait until 2019 for the GDP to return to the pre-crisis level.
Analysts warn that the budget deficit will rise this year.
Economists are even more optimistic in their forecasts than the government.
Economists forecast a 3% GDP growth in the second quarter
The Zagreb Economics Institute expects accelerated GDP growth in the second quarter.
Italian bank Intesa Sanpaolo is the latest to lower the GDP growth forecast for Croatia this year.
HNB Governor Vujčić expects up to 0.4 percent lower GDP growth this year due to the Agrokor crisis.
The European Commission has also issued five recommendations to Croatia.