The meeting noted Croatia's good economic results and progress in individual areas made over the last few years.
In the area of fiscal policy, progress was recognised in efforts to cut the fiscal deficit and implement fiscal consolidation.
The IMF pointed to the importance of continuing fiscal adjustment and accomplishing the target deficit of 2.8 percent of GDP in 2007, and recommended a more ambitious plan of medium-term fiscal adjustment.
Since 2004, when it signed a stand-by arrangement with the IMF that was successfully completed in November 2006, Croatia had carried out strong fiscal adjustment and significantly reduced its fiscal deficit, the ministry said in the statement.
Preliminary data show that the fiscal deficit in 2006 was three percent of GDP, while in 2003 it was 6.2 percent.
According to the 2007 budget, Croatia will continue with fiscal consolidation and reduction of the fiscal deficit to 2.8 percent of GDP.
Croatia is aware of the importance of reducing the deficit and will continue with medium-term fiscal adjustment. The current medium-term projection of the deficit is 2.4 percent of GDP.
An even stronger fiscal adjustment can be expected if planned structural reforms are implemented and budgetary spending consolidated, the ministry said in the statement.
Finance Minister Ivan Suker has expressed satisfaction with the successful completion of consultations on Article IV and the IMF's clear message to Croatia, the statement read.
An IMF mission visited Zagreb from 26 October to 8 November 2006, when it presented its preliminary conclusions.