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The Croatian economy is post-communist. In the late 1980s, at the beginning of the process of economic transition, its position was favourable, but it was gravely impacted by de-industrialization and war damages.

By early 2005, the foreign debt of the Government declined in growth, and was surpassed in size by the foreign debt of the banking sector, prompting further interventions by the national bank.

The National Judicial Council (Državno Sudbeno Vijece) of the Republic appoints all judges. It is a body consisting of a president and 14 members proposed and elected by the Parliament for 4-year terms, maximum 2 terms.

The main executive power of Croatian state is the Government (in Croatian: "vlada"), presided by the Prime Minister.

The official and common language, Croatian, is a South Slavic language, using the Latin alphabet. Other languages are spoken by less than 5% of the population.

By orders of the king in 1553 and 1578, large areas of Croatia and Slavonia adjacent to the Ottoman Empire were carved out into the Military Frontier (Vojna Krajina) and ruled directly from Vienna's military headquarters. Due to the dangerous proximity to the Ottoman armies, the area became rather deserted, so Austria encouraged the settlement of Serbs, Germans, Hungarians, Czechs, Slovaks and Rusyns/Ukrainians and other Slavs in the Military Frontier, creating an ethnic patchwork.

Croatia is inhabited mostly by Croats, while minority groups include Serbs, Bosniaks, Hungarians, Italians and others. Catholicism is the predominant religion, while there's also Eastern Orthodoxy and Islam.

The negative effects of feudalism escalated in 1573 when the peasants in northern Croatia and Slovenia rebelled against their feudal lords over various injustices such as unreasonable taxation or abuse of women in the Croatian and Slovenian peasant revolt.

The princes of Bribir from the Šubic family became particularly influential, asserting control over large parts of Dalmatia, Slavonia and Bosnia. Later, however, the Angevines intervened and restored royal power. They also sold the whole of Dalmatia to Venice in 1409.

The signing of the Peace of Vasvar caused unrest among the Hungarian and Croatian nobility which plotted against the emperor, but they weren't powerful enough to actually do something about it, even though they negotiated with both the French and the Turks. Imperial spies uncovered the conspiracy and on April 30, 1671 executed four esteemed Croatian and Hungarian noblemen involved in it, Petar Zrinski, F. K. Frankopan, F. Nadasdy and E. Tatenbach, in Wiener Neustadt.