"There's no reason for euphoria. In historical terminology one would say, it's neither the end nor the beginning of the end but possibly the end of the beginning of our attempts to put the country in order and create prerequisites for economic growth," he said at the start of a government session.
Milanovic said Croatia was given credit because one believed in the government's moves, notably in the finance sector.
"Of course, big projects can't be realised or start immediately, because preparations for those projects have to be serious and thorough, which takes a couple more months, but what we have done so far and what the finance minister is doing in the financial sector is expected of a serious state to start doing immediately and we set to work immediately."
Milanovic said mistakes were inevitable. "But who works, works, and who doesn't work and buries his head in the sand, brings the country into a tough position. We must work and are entitled to a wrong prediction every once in a while."
Fitch Ratings on Wednesday revised Croatia's outlook from negative to stable and affirmed its long-term foreign and local currency issuer default ratings at BBB- and BBB respectively.