"The strongest contribution to growth will come from domestic demand based on consumer spending and an acceleration in investments," Maric told a cabinet session.
Last week, he said Croatia expected growth of 2.5 percent this year, down from 2.6 percent in 2018. The target set last November was 2.9 percent.
According to the fresh projections adopted as a three-year economic plan to be submitted to the European Commission, growth will slow further, to 2.4 percent, in 2020 and then to 2.3 percent in 2021 and 2022.
The government projected this year's general budget deficit at 0.3 percent of gross domestic product, down from an original deficit target of 0.4 percent.
"However, like in the last two years, we will do everything to end the year on a positive territory," Maric said.
In 2017, Croatia's budget surplus was 0.8 percent of GDP. A preliminary figure for 2018 is a surplus of 0.2 percent. The government targets a 0.2 percent surplus in 2020, rising to 0.4 percent in 2021 and 0.8 percent in 2022.
A positive fiscal performance is important for Croatia's drive to adopt the euro, which it hopes to achieve in the next four to five years.