Ten years after joining the European Union, Croatia will adopt the euro on 1 January 2023, thus becoming the 20th member of the euro area after Lithuania. The adoption of the euro, which is achieved by complying with the convergence criteria, will reduce the exchange rate risk. Lower transaction and financing costs will strengthen trade and financial integration, thereby promoting real convergence.
Chart 1: Croatia's exports and imports with its main trading partners in 2021 Source: Eurostat, balance of payments. Note: trade flows broken down by partner country and product. Croatian exports of goods to Germany account for 11% of its total exports of goods.