ZAGREB (Reuters) - 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, defense and intelligence, but has no power to veto laws.