Bosnia & Hercegovina Economy
Economy - overview: The interethnic warfare in Bosnia and Herzegovina 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 2003-08 when GDP growth exceeded 5% per year. Banking reform accelerated in 2001 as all the Communist-era payments bureaus were shut down; foreign banks, primarily from Western Europe, now control most of the banking sector. The konvertibilna marka (convertible mark or BAM)- the national currency introduced in 1998 - is pegged to the euro, and confidence in the currency and the banking sector has increased. Bosnia's private sector is growing and foreign investment is slowly increasing, but government spending, at nearly 40% of adjusted GDP, remains high because of redundant government offices at the state, entity and municipal level. Implementing privatization, however, has been slow, particularly in the Federation where political division between ethnically-based political parties makes agreement on economic policy more difficult. A sizeable current account deficit and high unemployment rate remain the two most serious macroeconomic problems. Successful implementation of a value-added tax in 2006 provided a predictable source of revenue for the government and helped rein in gray market activity. National-level statistics have also improved over time but a large share of economic activity remains unofficial and unrecorded. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. In 2009, Bosnia's economy was hurt by the global financial downturn, with GDP, exports, and employment all showing declines. One of Bosnia's main challenges has been to cut public sector wages and social benefits to meet the IMF's budget deficit criteria and qualify for additional tranches of Fund aid.
GDP (purchasing power parity): $38.06 billion (2014 est.)
GDP (official exchange rate): $17.98 billion (2014 est.)
GDP - real growth rate: 0.8% (2014 est.)
GDP - per capita (PPP): $9,800 (2014 est.)
GDP - composition by sector: agriculture: 8%
industry: 26.3%
services: 65.7% (2014 est.)
Labor force: 1.281 million (2014 est.)
Labor force - by occupation: agriculture: 19%
industry: 30%
services: 51% (2013)
Unemployment rate: 43.6% (2014 est.)
Household income or consumption by percentage share: lowest 10%: 2.7%
highest 10%: 27.3% (2007)
Budget: revenues: $8.672 billion
expenditures: $9.363 billion (2014 est.)
Public debt: 45.5% of GDP (2014 est.)
Inflation rate (consumer prices): -0.9% (2014 est.)
Commercial bank prime lending rate: 6.39% (31 December 2014 est.)
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: 0% (2014 est.)
Electricity - production: 16.3 billion kWh (2013 est.)
Electricity - consumption: 12.56 billion kWh (2013 est.)
Electricity - exports: 5.097 billion kWh (2013 est.)
Electricity - imports: 1.353 billion kWh (2013 est.)
Oil - production: 0 bbl/day (2014 est.)
Oil - consumption: 29,000 bbl/day (2008 est.)
Oil - exports: 0 bbl/day (2013 est.)
Oil - imports: 22,140 bbl/day (2010 est.)
Oil - proved reserves: 0 bbl (1 January 2014 est.)
Natural gas - production: 0 cu m (2014 est.)
Natural gas - consumption: 275 million cu m (2014 est.)
Natural gas - exports: 0 cu m (2014 est.)
Natural gas - imports: 275 million cu m (2014 est.)
Natural gas - proved reserves: 0 cu m (1 January 2014 est.)
Current account balance: -$1.268 billion (2014 est.)
Exports: $5.892 billion (2014 est.)
Exports - commodities: metals, clothing, wood products
Exports - partners: Slovenia 16.4%, Italy 16.1%, Germany 12.8%, Austria 12.3%, Croatia 12% (2014)
Imports: $10.99 billion (2014 est.)
Imports - commodities: machinery and equipment, chemicals, fuels, foodstuffs
Imports - partners: Croatia 20.2%, Germany 12.6%, Slovenia 12.2%, Italy 9.8%, Russia 6.8%, Austria 5.7%, Hungary 5% (2014)
Reserves of foreign exchange and gold: $4.75 billion (31 December 2014 est.)
Debt - external: $11.37 billion (31 December 2014 est.)
Exchange rates: konvertibilna markas (BAM) per US dollar - 1.47 (2014 est.), 1.42 (2013 est.), 1.52 (2012 est.), 1.407 (2011 est.), 1.4767 (2010 est.)
economic climate  
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Update: This page was last updated on 10 November 2015
Sources: 1. CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
2. DIBNC Experts Team