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Population of 4.3 million people
Small open economy in the middle of Europe
Transition economy from socialistic planed to
open capitalistic economy
Very susceptible to the capital flows
War was completely over in 1995
During the period '95-'01 It has been very prosperous
periods in the history of the world.
Both USA and Europe (where most of the Croatian
exports and going) enjoyed very high levels of
prosperity and stability due to the supply shock
caused by the technological improvements.
Main Features of HNB Policy after
Obtaining Candidate Status
Central and Eastern Europe, a region which
had been a recipient of massive capital inflows
from Western Europe during the last twenty
years, has been hit hard by the current global
financial and economic crisis.
Croatia is one of the countries that have so far
managed to cope with the crisis relatively well.
Since 2000, Croatia has significantly improved its
political relations with the international community.
Better political relations helped finalize negotiations on joining the World Trade Organization in 2001 and contributed to the signing of the Stability and Association Agreement with the European Union
(EU) in 2002. Political integration was followed by higher foreign capital inflows to Croatia.
When Croatia obtained the candidate status for EU membership in 2005, inflows intensified even further.…
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