Croatians mourned their country's exit from the World Cup after a crushing 3-1 defeat by Mexico on Monday.

"Goodbye dreams!," commented state-run HRT television as Mexico scored their second goal in Recife. Mexico needed just to avoid defeat in the game to reach the knockout phase.

Cafe terraces across Croatia as well as main squares in towns were packed with people watching broadcasts of the match and hoping that the national team, known as the 'Fiery Ones' (Vatreni), could win.

"Mexico showed they were a better team .... notably in the second half. I congratulate them," coach Niko Kovac told HRT.

"We had an imperative to win ... we tried everything but simply the opponent was better," he added.

Croatian media had called it the "match of the decade". The country has not been in the last 16 of the World Cup since 1998.

"Stakes were high! At the start it was a tough game, but Mexico were better, more concrete," admitted sadly Ivan Joskovic. The 30-year-old electrician watched the match with thousands of other fans at the Zagreb main square.

"I'm glad that we scored at least one goal," he added.

The square was a sea of scarves, hats and jerseys in Croatia's distinctive red and white squared colours.

"Unfortunately, Mexico earned to win. It's a pity that our squad did not give us a reason for happiness," said Dario Narkic, 24, a student.

"Disaster in Recife!" read a headline of the influential Jutarnji List daily online edition.

"A sad farewell of Fiery Ones from Brazil! Mexico broke us in second half," the paper commented.

The Vecernji List daily said "Mexico were better and they deserved to celebrate" after their 3-1 victory.

Ever since the World Cup started on June 12, with Croatia's opening match against hosts Brazil, the small nation has been gripped with football fever.

Cafes have installed new TV screens on terraces and redecorated in red and white.

Apart from live broadcasts in main squares, giant posters of Croatian stars stare out from shop windows, notably midfielder Luka Modric and striker Mario Manduzkic.

Croatia finished third in Group A after their opening 3-1 defeat to Brazil and 4-0 trouncing of Cameroon. Mexico finished second to Brazil on goal difference.