DHAKA: Opposition challenger Kolinda Grabar-Kitarovic has become the first female president of Croatia, winning by the narrowest of margins.

She secured 50.5 percent of the vote with 99 percent of ballots counted, while incumbent Ivo Josipovic was close behind on 49.5 percent.

Josipovic has conceded defeat and congratulated his opponent, reports the BBC.

The challenger’s win is a sign that Croatia may be shifting to the right after the centre-left coalition’s failure to end six years of downturn.

The election was seen as a key test for the main parties ahead of parliamentary elections expected to be held towards the end of 2015.

The gap between the two candidates remained at about one percentage point throughout much of the second round.

Turnout was 58.9 percent - some 12 percent more than in the first round held two weeks ago, which was equally close.

Grabar-Kitarovic is a politically conservative member of the Croatian Democratic Union (HDZ), which pushed the country towards independence from the former Yugoslavia in 1991.

The 46-year-old is a former foreign minister and assistant to the Nato secretary general.

BDST: 0930 HRS, JAN 12, 2015