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.; 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.; 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
wheat, corn, fruits, vegetables; livestock
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.); country comparison to the world: 102;
Labor Force
1.38 million (2017 est.); country comparison to the world: 134;
Unemployment Rate
20.5% (2017 est.); 25.4% (2016 est.); note: official rate; actual rate is lower as many technically unemployed persons work in the gray economy; country comparison to the world: 188;
Population Below Poverty Line
16.9% (2015 est.);
Household Income or Consumption by Percentage Share
Lowest 10%: 25.8% (2011 est.)
Highest 10%: 25.8% (2011 est.)
Distribution of Family Income Gini Index
33.8 (2011); 33.1 (2007); country comparison to the world: 109;
Budget
Revenues: 7.993 billion (2017 est.)
Expenditures: 7.607 billion (2017 est.)
Public Debt
39.5% of GDP (2017 est.); 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.; country comparison to the world: 130;
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$6.483 billion (31 December 2017 est.); $5.013 billion (31 December 2016 est.); country comparison to the world: 95;
Stock of Broad Money
$6.483 billion (31 December 2017 est.); $5.013 billion (31 December 2016 est.); country comparison to the world: 97;
Stock of Domestic Credit
$11.3 billion (31 December 2017 est.); $9.27 billion (31 December 2016 est.); country comparison to the world: 105;
Market Value of Publicly Traded Shares
NA;
Reserves of Foreign Exchange and Gold
$6.474 billion (31 December 2017 est.); $5.137 billion (31 December 2016 est.); country comparison to the world: 90;
Debt External
$10.87 billion (31 December 2017 est.); $10.64 billion (31 December 2016 est.); country comparison to the world: 111;
Stock of Direct Foreign Investment at Home
$7.332 billion (31 December 2016 est.); $7.071 billion (31 December 2015 est.); country comparison to the world: 98;
Stock of Direct Foreign Investment Abroad
$0 (2014); country comparison to the world: 121;
Exchange Rates
konvertibilna markas (BAM) per US dollar -; 1.729 (2017 est.); 1.7674 (2016 est.); 1.7674 (2015 est.); 1.7626 (2014 est.); 1.4718 (2013 est.);
