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Croatia was among the most prosperous and industrialized areas of the former Yugoslavia. The Croatian economy emerged from its mild recession in 2000 with tourism the main factor, but structural unemployment remains a key negative. The government's policy of conciliation has allowed Croatia to improve its international relations and to have closer ties with Western Europe. The active policy of banks and industry restructuring is likely to continue to strengthen the economy.

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Croatia was among the most prosperous and industrialized areas of the former Yugoslavia. The Croatian economy emerged from its mild recession in 2000 with tourism the main factor, but structural unemployment remains a key negative. The government's policy of conciliation has allowed Croatia to improve its international relations and to have closer ties with Western Europe. The active policy of banks and industry restructuring is likely to continue to strengthen the economy.