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Economy Overview

Bosnia and Herzegovina has a transitional economy with limited market reforms. The economy relies heavily on the export of metals, energy, textiles, and furniture as well as on remittances and foreign aid. A highly decentralized government hampers economic policy coordination and reform, while excessive bureaucracy and a segmented market discourage foreign investment. The economy is among the least competitive in the region. Foreign banks, primarily from Austria and Italy, control much of the banking sector, though the largest bank is a private domestic one. The konvertibilna marka (convertible mark) - the national currency introduced in 1998 - is pegged to the euro through a currency board arrangement, which has maintained confidence in the currency and has facilitated reliable trade links with European partners. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. In 2016, Bosnia began a three-year IMF loan program, but it has struggled to meet the economic reform benchmarks required to receive all funding installments.Â Bosnia and Herzegovina's private sector is growing slowly, but foreign investment dropped sharply after 2007 and remains low. High unemployment remains the most serious macroeconomic problem. Successful implementation of a value-added tax in 2006 provided a steady source of revenue for the government and helped rein in gray-market activity, though public perceptions of government corruption and misuse of taxpayer money has encouraged a large informal economy to persist. National-level statistics have improved over time, but a large share of economic activity remains unofficial and unrecorded.Â Bosnia and Herzegovina's top economic priorities are: acceleration of integration into the EU; strengthening the fiscal system; public administration reform; World Trade Organization membership; and securing economic growth by fostering a dynamic, competitive private sector.

Agriculture Products

maize, milk, vegetables, potatoes, wheat, plums/sloes, apples, barley, cabbages, poultry

Industries

steel, coal, iron ore, lead, zinc, manganese, bauxite, aluminum, motor vehicle assembly, textiles, tobacco products, wooden furniture, ammunition, domestic appliances, oil refining

Industrial Production Growth Rate

3% (2017 est.)

Labor Force

806,000 (2020 est.)

Labor Force by Occupation

Agriculture: 18%

Industry: 30.4%

Services: 51.7% (2017 est.)

Unemployment Rate

0: 33.28% (2019 est.)

1: 35.97% (2018 est.)

Note: official rate; actual rate is lower as many technically unemployed persons work in the gray economy

Youth Unemployment Rate

Total: 35.1%

Male: 31.7%

Female: 40.7% (2021 est.)

Population Below Poverty Line

16.9% (2015 est.)

Household Income or Consumption by Percentage Share

Lowest 10%: 2.9%

Highest 10%: 25.8% (2011 est.)

Distribution of Family Income Gini Index

0: 33 (2011 est.)

1: 33.1 (2007)

Budget

Revenues: 7.993 billion (2017 est.)

Expenditures: 7.607 billion (2017 est.)

Budget Surplus

2.1% (of GDP) (2017 est.)

Public Debt

0: 39.5% of GDP (2017 est.)

1: 44.1% of GDP (2016 est.)

Note: data cover general government debt and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions.

Commercial Bank Prime Lending Rate

Stock of Narrow Money

Stock of Broad Money

Stock of Domestic Credit

Market Value of Publicly Traded Shares

Reserves of Foreign Exchange and Gold

0: $6.474 billion (31 December 2017 est.)

1: $5.137 billion (31 December 2016 est.)

Debt External

0: $10.87 billion (31 December 2017 est.)

1: $10.64 billion (31 December 2016 est.)

Stock of Direct Foreign Investment at Home

Stock of Direct Foreign Investment Abroad

Exchange Rates

0: konvertibilna markas (BAM) per US dollar -

1: 1.729 (2017 est.)

2: 1.7674 (2016 est.)

3: 1.7674 (2015 est.)

4: 1.7626 (2014 est.)

5: 1.4718 (2013 est.)

Year	2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Taxes and Other Revenues

44% (of GDP) (2017 est.)

Fiscal Year

calendar year

Real GDP

$47.05 billion
1
$49.17 billion
2
$47.82 billion

GDP Purchasing Power Parity

GDP Real Growth Rate

GDP Per Capital

$14,300 (2020 est.)
1
$14,900 (2019 est.)
2
$14,400 (2018 est.)
note
data are in 2017 dollars

Inflation Rate

1.2% (2017 est.)
1
-1.1% (2016 est.)

Credit Ratings

Moody s rating
B3 (2012)
Standard & Poors rating
B (2011)

Gross National Saving

GDP Composition by end Use

Household consumption
77.4% (2017 est.)
Government consumption
20% (2017 est.)
Investment in fixed capital
16.6% (2017 est.)
Investment in inventories
2.3% (2017 est.)
Exports of goods and services
38.7% (2017 est.)
Imports of goods and services
-55.1% (2017 est.)

GDP Composition by Sector of Origin

Agriculture
6.8% (2017 est.)
Industry
28.9% (2017 est.)
Services
64.3% (2017 est.)

Inflation Rate Consumer Prices

Current Account Balance

0
-$873 million (2017
1
-$821 million (2016

Exports

0
$6.81 billion (2020
1
$8.17 billion (2019
2
$8.57 billion (2018
Note
Data are in

Exports Partners

Germany
14%
Italy
12%
Croatia
11%
Serbia
11%
Austria
9%
Slovenia
8%

Exports Commodities

Electricity, seating, leather shoes, furniture, insulated wiring (2019)

Imports

$9.71 billion 2020 est. note
data are in
$11.15 billion 2019 est. note
data are in
$11.55 billion 2018 est. note
data are in

Imports Partners

Croatia
15%
Serbia
13%
Germany
10%
Italy
9%
Slovenia
7%
China
6%

Imports Commodities

Refined petroleum, cars, packaged medicines, coal, electricity (2019)

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