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Croatia has an economy based mostly on various services and some, mostly light industry. Tourism is a notable source of income. The Gross Domestic Product per capita in purchasing power parity terms for 2002 was USD 9,800 or 42.7% of the EU average.

After the Battle of Sisak in 1593, when the Ottoman army was successfully repelled for the first time on the territory of Croatia, the lost territory was mostly restored, except for large parts of today's Bosnia and Herzegovina. By the 1700s, the Ottoman Empire was driven out of Hungary and Croatia, and Austria brought the empire under central control.

Croatian culture is based on thirteen century long history during which the country has attained many monuments and cities, which gave birth to a fair number of brilliant individuals. The country includes six World Heritage sites and eight national parks. Three Nobel prize winners came from Croatia, as did numerous important inventors and other notable people — notably, some of the first fountain pens came from Croatia.

The official entering of Croatia into personal union with Hungary, becoming part of the Kingdom of Hungary, had several important consequences.

The Hungarian king introduced a variant of the feudal system. Large fiefs were granted to individuals who would defend them against outside incursions thereby creating a system for the defence of the entire state. However, by enabling the nobility to seize more and more economic and military power, the kingdom itself lost influence to the Frankopan, Šubic, Nelipcic, Kacic, Kurjakovic, Draškovic, Babonic and other families.

A four-fold split of the province of Illyricum followed at the turn of the 4th century under Diocletian — an emperor of Illyrian descent, from Dalmatia. Other notable people from these areas in this period included the Christian Jerome, Saint Marinus (builder of San Marino), emperors Valentinian I and Valens, and Pope John IV.

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 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.

A change of leadership was far from a solution to the war with the Turks, in fact, the Ottoman Empire gradually expanded in the 16th century to include most of Slavonia, western Bosnia and Lika.

Croatian lands became subject to the Carolingian Empire around 800, and regained independence after the death of Charlemagne in 814. The first written mention of Croats dates from 852, a statute by Duke Trpimir, the founder of the Trpimirovic ruling dynasty. The country was recognized by Pope John VIII as an independent dukedom under Branimir in 879 (dux Chroatorum).

The Iron Age left traces of the Hallstatt culture (proto-Illyrians) and the La Tčne culture (proto-Celts).

The Croat and other Slavic tribes arrived in what is today Croatia and Bosnia in the 7th century. The Croats organized into two dukedoms; the Pannonian duchy in the north and the Dalmatian duchy in the south. The Christianization of the Croats ended in the 9th century.

With the fall of the Venetian Republic in 1797, its possessions in eastern Adriatic mostly came under the authority of France which passed its rights to Austria the same year. Eight years later they were restored to France as the Illyrian provinces, but won back to the Austrian crown by 1815. Though now part of the same empire, Dalmatia and Istria were part of Cisleithania while Croatia and Slavonia were under Hungary.

Since the adoption of the 1990 Constitution, Croatia has been a parliamentary democracy.