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Economy Overview

Bosnia and Herzegovina ranked next to 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 number of Yugoslavia's defense plants. The interethnic warfare in Bosnia caused production to plummet by 80% from 1992 to 1995 and unemployment to soar. With an uneasy peace in place, output recovered in 1996-99 at high percentage rates from a low base; but output growth slowed in 2000-02. Part of the lag in output was made up in 2003-2004. National-level statistics are limited and do not capture the large share of black market activity. The konvertibilna marka (convertible mark or BAM)- the national currency introduced in 1998 - is now pegged to the euro, and the Central Bank of Bosnia and Herzegovina has dramatically increased its reserve holdings. Implementation of privatization, however, has been slow, and local entities only reluctantly support national-level institutions. Banking reform accelerated in 2001 as all the Communist-era payments bureaus were shut down. A sizeable current account deficit and high unemployment rate remain the two most serious economic problems. 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 (2001)

Industrial Production Growth Rate

5.5% (2003 est.)

Labor Force

1.026 million (2001)

Electricity production

10.04 billion kWh (2002)

Electricity Consumption

8.318 billion kWh (2002)

Electricity Exports

3.288 billion kWh (2002)

Electricity Imports

2.271 billion kWh (2002)

Unemployment Rate

44% officially; however, grey economy may reduce actual unemployment to near 20% (2004 est.)

Population Below Poverty Line

25% (2004 est.)

Household Income or Consumption by Percentage Share

Lowest 10%: NA%

Highest 10%: NA%

Budget

Revenues: $3.618 billion

Expenditures: $3.642 billion, including capital expenditures of NA (2004 est.)

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

$2 billion (2004 est.)

Debt External

$3 billion (2004 est.)

Stock of Direct Foreign Investment at Home

Stock of Direct Foreign Investment Abroad

Exchange Rates

Exchange rates: marka per US dollar - 1.58 (2004), 1.73 (2003), 2.08 (2002), 2.19 (2001), 2.12 (2000)

Note: the marka is pegged to the euro

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

Fiscal Year

calendar year

GDP Purchasing Power Parity

$26.21 billion (2004 est.)

GDP Real Growth Rate

5% (2004 est.)

GDP Per Capital

Purchasing power parity - $6,500 (2004 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

Agriculture
14.2%
Industry
30.8%
Services
55% (2002)

Inflation Rate Consumer Prices

1.1% (2004 est.)

Current Account Balance

$-2.1 billion (2004 est.)

Exports

$1.7 billion f.o.b. (2004 est.)

Exports Partners

Italy
22.3%
Croatia
21.1%
Germany
20.8%
Austria
7.4%
Slovenia
7.1%
Hungary
4.8%

Exports Commodities

Metals, clothing, wood products

Imports

$5.2 billion f.o.b. (2004 est.)

Imports Partners

Croatia
23.8%
Slovenia
15.8%
Germany
14.8%
Italy
11.4%
Austria
6.6%
Hungary
6.1%

Imports Commodities

Machinery and equipment, chemicals, fuels, foodstuffs

Bosnia and Herzegovina