Economy Overview
Bosnia and Herzegovina ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic in the old Yugoslav federation. Although agriculture has been almost all in private hands, farms have been small and inefficient, and the republic traditionally has been a net importer of food. Industry has been greatly overstaffed, one reflection of the socialist economic structure of Yugoslavia. TITO had pushed the development of military industries in the republic with the result that Bosnia hosted a large share of Yugoslavia's defense plants. The bitter interethnic warfare in Bosnia caused production to plummet by 80% from 1990 to 1995, unemployment to soar, and human misery to multiply. With an uneasy peace in place, output recovered in 1996-98 at high percentage rates on a low base; but output growth slowed appreciably in 1999, and GDP remains far below the 1990 level. Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. In 1999, the convertible mark - the national currency introduced in 1998 - gained wider acceptance, and the Central Bank of Bosnia and Herzegovina dramatically increased its reserve holdings. Implementation of privatization, however, faltered in both areas. Banking reform is also lagging. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare for an era of declining assistance.
Agriculture Products
wheat, corn, fruits, vegetables; livestock
Industries
steel, coal, iron ore, lead, zinc, manganese, bauxite, vehicle assembly, textiles, tobacco products, wooden furniture, tank and aircraft assembly, domestic appliances, oil refining (much of capacity damaged or shut down) (1995)
Industrial Production Growth Rate
5%-10% (1999 est.)
Labor Force
1.026 million
Electricity production
2.22 billion kWh (1998)
Electricity production by source
Fossil fuel: 32.43%
Hydro: 67.57%
Nuclear: 0%
Other: 0% (1998)
Electricity Consumption
2.065 billion kWh (1998)
Electricity Exports
0 kWh (1998)
Electricity Imports
0 kWh (1998)
Currency
1 convertible marka (KM) = 100 convertible pfenniga
Unemployment Rate
35%-40% (1999 est.)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $NA
Expenditures: $1.6 billion, including capital expenditures of $NA (2000 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$4.1 billion (1997 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
convertible marks per US$1 - 1.9 (1999)
