Government Type: presidential/parliamentary democracy

Capital: Zagreb Geographic Coordinates: 45 48 N, 16 00 E

Independence: 25 June 1991 (from Yugoslavia)

National holiday: Independence Day, 8 October (1991); note - 25 June 1991 was the day the Croatian parliament voted for independence; following a three-month moratorium to allow the European Community to solve the Yugoslav crisis peacefully, Parliament adopted a decision on 8 October 1991 to sever constitutional relations with Yugoslavia

Constitution: adopted on 22 December 1990; revised 2000, 2001

Legal system: based on Austro-Hungarian law system with Communist law influences; has not accepted compulsory ICJ jurisdiction

Suffrage: 18 years of age, 16 if employed; universal

Economy 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. Between 2000 and 2007, however, Croatia's economic fortunes began 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. While long term growth prospects for the economy remain strong, Croatia will face significant pressure as a result of the global financial crisis. Croatia's high foreign debt, anemic export sector, strained state budget, and over-reliance on tourism revenue will result in higher risk to economic stability over the medium term.

Roadways:

International Disputes: dispute remains with Bosnia and Herzegovina over several small 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 unratified 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