On January 1, Croatia joined the euro area and the Schengen area at the same time, becoming the 20th member of the euro area and the 27th member of the Schengen area. Analysts pointed out that Croatia's accession to the euro area is expected to bring economic benefits and financial stability to Croatia, but the Croatian economy is also facing challenges such as price fluctuations and declining growth rates. Croatia, the first member of the Eurozone in eight years with a population of about 4 million, is the first country to join the Eurozone since 2015. In a press release released on December 30, 2022, the European Commission pointed out that Croatia's accession means that the number of countries in the euro area has increased to 20 and the population has expanded to 347 million, which is of great significance to the euro area and the Schengen area and is an important milestone for the EU. In an interview with Croatian news agency, European Commission President Ursula Vondrein said that Croatia's accession to the euro area and Schengen area would attract investment, create jobs, promote economic growth and help Croatia develop into a European renewable energy center. This is not only of great significance to Croatia, but also proof of the strength and unity of the EU. The European Central Bank announced in July 2022 that the European Council officially approved Croatia's accession to the Eurozone on January 1, 2023, when the Euro to Croatian Kuna exchange rate will be 1 to 7.5345. The positive effect can be expected that Croatia is located in the south central Europe. Data shows that in 2021, Croatia's economic growth rate will exceed 10%, making it one of the fastest growing economies in Europe, but its per capita GDP will only reach 70% of the EU average. Some Croatian officials and scholars pointed out that for Croatia, joining the euro zone can not only facilitate the circulation of goods and services, promote the development of tourism, ensure financial security, but also improve the living standard of the people. Croatian Finance Minister Marko Primorac said that Croatian economy has been "Euroized", more than 70% of savings deposits are denominated in euros, and real estate, cars and other prices are priced in euros for a long time. Today, the euro will become the anchor of Croatia's economic stability, resist external shocks in the financial market and improve the investment environment. In an interview with Xinhua News Agency, the Croatian political analyst Davor Guenero said that Croatia's accession to the euro zone will bring economic benefits and stronger psychological recognition to the people. On the one hand, it will promote the rapid circulation of goods and services, attract more EU tourists to visit Croatia, and on the other hand, the euro, as the official currency, will help financial stability and lower interest rates. Tourism is an important pillar of Croatia's economy. In 2022, Croatia's tourism industry will gradually get rid of the impact of the epidemic, receiving 15 million tourists in the first eight months, which has exceeded 90% of the total number of tourists in 2019. At the same time, short distance tourism in Europe has been gradually welcomed since the outbreak of the epidemic. Croatia's accession to the Schengen area and the introduction of the euro are expected to continue to promote this trend. Growth challenges still exist. For Croatia, joining the euro zone means hope for economic progress. However, the Croatian economy also faces challenges such as rising prices and slowing economic growth during the currency adjustment period, as well as constraints such as aging population and long-term shortage of labor force.