Croatia is a democratic country. Since the adoption of the 1990 Constitution, the country has been run according to laws put in place by parliament. The President of the country is the head of the state and he has been elected for a five-year term. The Croatian parliament is composed of 160 representatives, all elected by popular vote to serve four-year terms. Croatia has got three tiered judicial systems consisting of the Supreme Court, Country courts and Municipal courts. The Constitutional Court rules on matters regarding the constitution. Croatia is also known as Republika Hryatska (Republic of Croatia). The country’s population this year is estimated to be 4,494,749 with a growth rate of 0.0% and life expectancy of 74.7.
Croatia's economy has gone through profound transformation since the country gained its independence in the early 90s. Today it is a functioning market economy with stable macroeconomic indicators, but structural reforms are yet to be completed. The microeconomic environment and in particular the competitiveness of the local economy need to be rapidly enhanced.
At present the economy is enjoying relatively fast growth, low inflation and a stable exchange rate. However, the budget deficit remains high. In 2006, it is expected to be around 3.3% of GDP, and the current account deficit 6.3% of GDP while external debt reaches 82.5% of GDP. The State still plays a significant role in the local economy and unemployment (13.1% according to ILO criteria) is very high.
