Sanader bases his assessment on the expectations that after a difficult first quarter, Gross Domestic Product growth in the second quarter would be bigger than "in all these years".
He backed his assessment with statistical data on industrial production growth, low inflation and accelerated growth of exports in relation to imports.
Industrial production in June rose by 12.3 percent in relation to June 2004 and in the first six months of this year it rose by 4.7 percent in relation to the same period the year before.
The inflation rate in the first six months amounted to 2.9 percent and the PM said he expected the inflation rate to stay at the same level given that the price of oil had been stabilised.
Sanader said that the fact that the export market was growing faster than imports was encouraging.
This is the statistics and not the wishes of the government, the PM said, indirectly responding to criticism about the government's poor economic policy which came from Social Democratic Party leader Ivica Racan.
Sanader said that the external debts growth was also slowing down, adding he expected the debt's share in GDP to drop to 81 percent by the year's end in relation to the end of last year when it amounted to 82.2 percent.
The PM also said that the Swiss formula for the indexation of pensions, according to available data, would not reduce the value of pensions.