DUSHANBE, January 12, 2015, Asia-Plus -- Opposition challenger Kolinda Grabar-Kitarovic has become the first female president of Croatia, winning by the narrowest of margins.

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

Mr. Josipovic has conceded defeat and congratulated his opponent.

International media sources report that 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 BBC reports.

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

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

Ms. Kolinda Grabar-Kitarovic (born 29 April 1968) is a Croatian diplomat and politician.  She won the 2015 Croatian presidential election on January 11, 2015, and will be the first woman president of Croatia.

From 2011 until 2014 she served as the Assistant Secretary General for Public Diplomacy at NATO.  She is the first woman ever to be appointed the position of Assistant Secretary General at NATO.  Previously she was the Minister of Foreign Affairs of Croatia from 2005 to 2008 and Croatia''s Ambassador to the United States from 2008 to 2011.  She is the member of Croatian Democratic Union and one of the members of Trilateral Commission.

Mr. Josipovic, a 57-year-old law expert and classical composer, had been president since 2010.

Croatia became the newest member of the European Union in July 2013,