Croatia Economic Transition and Market Development

Croatia Economic Transition and Market Development

Croatia was among the most developed Central European transition countries in 1990 alongside countries like Slovenia and Czech Republic. However, the country suffered significant damage in its economic development due to the high cost of war, estimated at $37.1 billion. This burden caused by the war made it difficult for Croatia to make a transition into a market economy. The GDP of Croatia before the war in 1990 was recovered in 2004. The GDP per capita of Croatia accounted for 61% of the EU average in 2012. It is imperative to note that in 1994, kuna,…