Croatia

Phone Code: 00385

Root-level Domain Code: .hr

CIA Info

Background: The lands that today comprise Croatia were part of the Austro-Hungarian Empire until the close of World War I. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became a federal independent Communist state under the strong hand of Marshal TITO. Although Croatia declared its independence from Yugoslavia in 1991, it took four years of sporadic, but often bitter, fighting before occupying Serb armies were mostly cleared from Croatian lands. Under UN supervision, the last Serb-held enclave in eastern Slavonia was returned to Croatia in 1998.

Economy Overview: Once one of the wealthiest of the Yugoslav republics, Croatia's economy suffered badly during the 1991-1995 war as output collapsed and the country missed the early waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Since 2000, however, Croatia's economic fortunes have begun to improve slowly, with moderate but steady GDP growth between 4% and 5% led by a rebound in tourism and credit-driven consumer spending. Inflation over the same period has remained tame and the currency, the kuna, stable. Nevertheless, difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit and uneven regional development. The state retains a large role in the economy, as privatization efforts often meet stiff public and political resistance. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the part of the public and lack of strong support from politicians. The EU accession process should accelerate fiscal and structural reform.

Geography Note: controls most land routes from Western Europe to Aegean Sea and Turkish Straits; the vast majority of Adriatic Sea islands lie off the coast of Croatia - some 1,200 islands, islets, ridges, and rocks

Location: Southeastern Europe, bordering the Adriatic Sea, between Bosnia and Herzegovina and Slovenia

Natural Resources: oil, some coal, bauxite, low-grade iron ore, calcium, gypsum, natural asphalt, silica, mica, clays, salt, hydropower

Geographic Coordinates: 45 10 N, 15 30 E

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