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The Racan Government carried out a large number of structural reforms and with tourism as the main factor, the country emerged from recession in 2000. Due to overall increase in stability, the economic rating of the country improved and interest rates dropped. As a result of coalition politics and resistance from the unions and the public, many reforms are still overdue, esp. in the legal system.

As the Turkish incursion into Europe started, Croatia was once again a border area between two major forces in this part of the world. While Croats under fra Ivan Kapistran contributed to the Christian victory over the Ottomans in the siege of Belgrade of 1456, they suffered a major defeat in the Battle of Krbava Field (in Lika, Croatia) in 1493 and gradually lost increasing amounts of territory to the Ottoman Empire.

After that there was one more notable native King, Dmitar Zvonimir (1075-1089). His kinghood is carved in stone Baška Tablet, preserved to this day as the oldest written Croatian text, kept in the archaeological museum in Zagreb. Zvonimir's reign is remembered as a peaceful and prosperous time, during which the connection of Croats with the Pope was further affirmed, so much so that Catholicism would remain among Croats until the present day.

The Republic of Croatia is a crescent-shaped country in Europe bordering the Mediterranean, Central Europe and the Balkans. Its capital is Zagreb. In recent history, it was a republic in the SFR Yugoslavia, but it achieved independence in 1991. It is a candidate for membership of the European Union.

The first King of Croatia, Tomislav of the Trpimirovic dynasty, was crowned in 925. Tomislav, rex Chroatorum, united the Pannonian and Dalmatian duchies and created a sizeable state. The medieval Croatian kingdom reached its peak during the reign of King Petar Krešimir IV (1058-1074).

The natural growth rate is minute, as the demographic transition is long done. Life expectancy and literacy rates are reasonably high.

The Croatian people trace their origins to Slavic peoples which moved into the territory of the former Roman provinces Pannonia and Dalmatia between the 7th and 8th centuries. No contemporary written records about these events have been preserved, especially not about the events as a whole and from the area itself. Instead, historians rely on records written several centuries after the facts, and even those records may be based on oral tradition.

Rapid industrialization and diversification occurred after World War II. Decentralization came in 1965, allowing growth of certain sectors, like the tourist industry. Profits from Croatian industry were used to develop poorer regions in the former Yugoslavia. This, coupled with austerity programs and hyperinflation in the 1980s, led to discontent in both Croatia and Slovenia that fueled the independence movement.

Illyria was a sovereign state until the Romans conquered it in 168 BC. The Romans organized the land into the Roman province of Illyricum which encompassed most of modern Croatia (Istria was part of the province of Italia). Illyricum was subsequently split into the provinces of Pannonia and Dalmatia in year 10. Pannonia was further split in two by Trajan between 102 and 107.

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.