Economic Overview
Once one of the wealthiest of the yugoslav republics, croatia's economy suffered badly during the 1991-95 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 6% 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.
Environmental Issues
Air pollution (from metallurgical plants) and resulting acid rain is damaging the forests; coastal pollution from industrial and domestic waste; landmine removal and reconstruction of infrastructure consequent to 1992-95 civil strife
Government Type
Presidential/parliamentary democracy
Population
4,491,543 (july 2008 est.)
Location
Southeastern europe, bordering the adriatic sea, between bosnia and herzegovina and slovenia
Area
Total: 56,542 sq km
land: 56,414 sq km
water: 128 sq km
Slightly smaller than west virginia
Country Aliases
Conventional long form: republic of croatia
conventional short form: croatia
local long form: republika hrvatska
local short form: hrvatska
former: people's republic of croatia, socialist republic of croatia
Capital
Name: zagreb
geographic coordinates: 45 48 n, 16 00 e
time difference: utc+1 (6 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins last sunday in march; ends last sunday in october
Military Service
18-27 years of age for compulsory military service; 16 years of age with consent for voluntary service; 6-month conscript service obligation; full conversion to professional military service by 2010 (2006)
International Disputes
Dispute remains with bosnia and herzegovina over several small disputed sections of the boundary related to maritime access that hinders ratification of the 1999 border agreement; the croatia-slovenia land and maritime boundary agreement, which would have ceded most of pirin bay and maritime access to slovenia and several villages to croatia, remains un-ratified and in dispute; slovenia also protests croatia's 2003 claim to an exclusive economic zone in the adriatic; as a european union peripheral state, slovenia imposed a hard border schengen regime with non-member croatia in december 2007
Sources: Central Intelligence Agency (CIA)
