Croatia's economy after stabilisation

Economic growth has been slow in Croatia despite of its stabilization program. In the five years since achieving independence, the country has experienced war, a one-third drop in GDP, high inflation and economic crisis. The old industrial structure from socialist times still exists while banking is weak. Discrepancy between economic prosperity expectation and reality is observed. Unemployment is high at 19% while capital accumulation is extremely limited. Croatia's sustained growth on the basis of greater efficiency in the long run is questioned.