History of Croatia since 1995

This is the history of Croatia since the end of the Croatian War of Independence.

In November 1995 the war in Croatia ended. Around 20,000 people were killed in the war, while official figures on wartime damage published in Croatia in 1996 specify 180,000 destroyed housing units, 25% of the Croatian economy destroyed, and US$27 billion of material damage.Europe Review 2003/04 estimated the war damage at US$37 billion in damaged infrastructure, lost economic output, and refugee-related costs, while GDP dropped 21% in the period. 15 percent of housing units and 2,423 cultural heritage structures, including 495 sacral structures, were destroyed or damaged. The war imposed an additional economic burden of very high military expenditures. By 1994, as Croatia rapidly developed into a de facto war economy, the military consumed as much as 60 percent of total government spending.

Following the end of the war, parliamentary elections were held in 1995, which resulted in a victory of the ruling Croatian Democratic Union. Zlatko Mateša became the new Prime Minister of Croatia, replacing Nikica Valentić, and formed the first peacetime government of independent Croatia. Elections for the Zagreb Assembly were held at the same time, which were won by the opposition. This led to the Zagreb crisis since the president refused to provide formal confirmation to the opposition parties proposed Mayor of Zagreb. In 1996 mass demonstrations were held in Zagreb in response to revoking broadcasting license to Radio 101, a radio station that was critical towards the ruling party.

As a result of the macro-stabilization programs, the negative growth of GDP during the early 1990s stopped and turned into a positive trend. Post-war reconstruction activity provided another impetus to growth. Consumer spending and private sector investments, both of which were postponed during the war, contributed to the growth in 1995-97 and improved economic conditions. Real GDP growth in 1995 was 6,8%, in 1996 5,9% and in 1997 6,6%.

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