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 is almost all in private hands, farms are small and inefficient, and the republic traditionally is 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 from a low base; but output growth slowed appreciably in 1999 and 2000, 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. The marka - the national currency introduced in 1998 - has gained wide acceptance, and the Central Bank of Bosnia and Herzegovina has dramatically increased its reserve holdings. Implementation of privatization, however, has been slower than anticipated. Banking reform accelerated in early 2001 as all the communist-era payments bureaus were shut down. 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
Industrial Production Growth Rate
10% (2000 est.)
Labor Force
1.026 million
Electricity production
2.585 billion kWh (1999)
Electricity production by source
Fossil fuel: 38.68%
Hydro: 61.32%
Nuclear: 0%
Other: 0% (1999)
Electricity Consumption
2.684 billion kWh (1999)
Electricity Exports
150 million kWh (1999)
Electricity Imports
430 million kWh (1999)
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: $1.9 billion
Expenditures: $2.2 billion, including capital expenditures of $NA (1999 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$3.4 billion (2000 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
marka per US dollar - 2.086 (January 2001), 2.124 (2000), 1.837 (1999), 1.760 (1998), 1.734 (1997), 0.015 (1996)
