Croatian president and presidential candidate Ivo Josipovic speaks after the unofficial results in the headquarters in Zagreb December 28, 2014. Josipovic faces a tight run-off next month to try to win a second five-year term as Croatia's president after failing to secure a majority from voters frustrated by the country's economic malaise. [Photo/Agencies]

ZAGREB - Croatia's presidential election on Sunday produced no outright winner, leaving incumbent Ivo Josipovic, who narrowly led the first round, facing a runoff vote against an opposition challenger on Jan 11.

With around 94 percent of the votes counted, Josipovic, supported by the ruling Social Democrats, was on top with 38.5 percent, followed closely by Kolinda Grabar Kitarovic of the main opposition party, the HDZ, on 37 percent.

Croatia, which joined the EU in July last year, has had six years of recession with prospects of zero growth in 2015. The president, elected for a five-year term, has a say in foreign policy, defence and intelligence, but has no power to veto laws.