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Bosnia and Herzegovina

 Flag of Bosnia and Herzegovina

Last reviewed: 22 September 2009

Country information

ECONOMY

Basic Economic Facts

GDP: US $15.139 billion (2007, World Bank)
GDP per capita: US $3,808 (IMF World Economic Outlook April 2007)
Real GDP growth in 2008: 5.5% (IMF World Economic Outlook April 2009)
Unemployment Level: 23.4% approx. (Labour Force Survey 2008)

Developments since independence

Since 1995, GDP has more than tripled and merchandise exports have increased tenfold. However, economic growth has yet to reach pre-war levels and around 20% of the population continue to live below the poverty line and approximately 30% are near it. Progress on structural reforms has been uneven. The banking sector has been largely privatized and modernized, and other financial sector reforms have been well advanced. Yet privatization of other state-owned companies has occurred at a slow pace, and the private sector’s contribution to GDP is still lower than in most other countries in the region. Early attempts at privatization have resulted in diluted ownership and weak governance, and large-company divestiture has been painfully slow. The business environment is not investor-friendly. BiH must begin to attract significant levels of foreign direct investment if it is to boost its GDP growth.

Recent economic performance


Today, BiH's economic growth continues to be generated largely by post-war reconstruction funded by external aid.  The macro-economic situation remains weak but stable, underpinned by a fully convertible currency (the Bosnian Mark (BAM), which has a fixed parity with the Euro), low single digit inflation and relatively tight fiscal policies supported by the IMF. Post-war growth rates of 30% had stabilised at around 5% before the global economic downturn.  With its official GDP of US$3,808 per capita in 2007, BiH falls into the category of lower middle-income countries. Approximately 62% of this comes from the service sector, 29% from industry and 9% from agriculture.

Despite the improvements, the pace of economic reform in BiH needs to be accelerated. Foreign Direct Investment - although increasing - is still hindered by excessive layers of bureaucracy, political interference and corruption. BiH is currently ranked as 119th in IFC’s ‘Doing Business 2010’ report. Over the coming period, priority areas for the BiH State and Entity Governments, with support from the international community, will include the creation of a Single Economic Space to include both Entities, tighter control over public finances and the removal of barriers to investment.

Further information about BiH’s economy can be found at UK Trade & Investment Country Profile: BiH.

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Contacts

Bosnia and Herzegovina, Sarajevo, British Embassy

Address:

British Embassy
Tina Ujevica 8: HMA, Chancery, MoD, Political and Press sections
Petrakijina 11: Visa, Consular, Management, Commercial and DFID
Sarajevo, Bosnia and Herzegovina

Telephone:

(387) 33 282 200

Fax:

(387 33) (28) 2203 Chancery, Press, MoD
(387 33) (20) 4780 Management /Consular/Visa
(387 33) (28) 2265 Commercial/DfID

Email: mailto:britemba@bih.net.ba

Office hours:

GMT:
Mon-Thurs: 0730-1600
Fri: 0730-1330

Local Time:
Mon-Thurs: 0830-1700
Fri: 0830-1430

Website: http://ukinbih.fco.gov.uk/en/

Bosnia and Herzegovina, Banja Luka, British Embassy Office


Bosnia and Herzegovina