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The figure put annual growth for 2017 at 2.7 percent, down from 3.2 percent in 2016.
The government's estimate for 2017 growth was 3.2 percent, the same as last year. It expects the economy to grow 2.9 percent this year.
"The fourth quarter figure is undoubtedly a negative surprise," said Zrinka Zivkovic Matijevic from Raiffeisenbank.
The statistics bureau also said in its preliminary estimate that the economy had expanded a seasonally adjusted 0.1 percent compared to the previous quarter. Seasonally adjusted fourth-quarter growth was 2.2 percent year-on-year.