ZAGREB (AFP) -- Croatian Prime Minister Ivo Sanader pledged to maintain the country's macroeconomic stability in 2007, when growth of 5.0 percent is foreseen.

"We want to maintain macro-economic stability in Croatia," Sanader told journalists presenting the main issues on which his conservative government is to focus this year.

"We are planning a minimum five percent gross domestic product (GDP) growth," he said. "In Croatia there are big appetites and many are saying that growth of 7.0 or 8.0 percent would be possible. It is desirable but I am not certain that it is possible in current circumstances."

In 2006 Croatian economic growth was set to reach 4.6 percent, according to national statistics office forecasts, the main driver being tourism income, which made up nearly 19.5 percent of GDP this year.

Sanader said he expected GDP to grow further as the country approaches membership in the European Union and NATO, as the investors see participation in the blocs as a guarantor of security.

The premier also pledged a further decrease in the budget deficit, which came to 3.0 percent of output in 2006.

The government in addition wants to lower the state share in foreign debt, Sanader stressed.

Croatia's foreign debt is a blot on its economic landscape, having reached 28.7 billion euros (37.9 billion dollars), 12 percent more than at the end of 2005.