Bosnia and Herzegovina Economy

Is Bosnia and Herzegovina a rich country?

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.

Bosnia and Herzegovina Economy Data

What is the GDP of Bosnia and Herzegovina?

GDP - Gross Domestic Product (PPP) $42,530,000,000 (USD)
GDP - official exchange rate $16,530,000,000 (USD)
GDP - real growth rate 3%
GDP Per Capita $11,000.00 (USD)
GDP by Sector- agriculture 7.8%
GDP by Sector- Industry 26.8%
GDP by Sector- services 65.4%
GDP - composition, by end use household consumption: 80.9%

government consumption: 21.5%

investment in fixed capital: 18.6%

investment in inventories: 0%

exports of goods and services: 32.8%

imports of goods and services: -55.1%
Population Below Poverty Line 17.2%
Inflation Rate -0.8%
Labor Force 1,480,000
Labor Force By Occupation- agriculture 19%
Labor Force By Occupation- industry 30%
Labor Force By Occupation- services 51%
Unemployment Rate 43.2%
Unemployment - note official rate; actual rate is lower as many technically unemployed persons work in the gray economy
Fiscal Year calendar year
Annual Budget $7,681,000,000 (USD)
Budget Surplus or Deficit - percent of GDP -1.8%
Public Debt (% of GDP) 46.5%
Taxes and other revenues - percent of GDP 46.5%
Major Industries steel, coal, iron ore, lead, zinc, manganese, bauxite, aluminum, motor vehicle assembly, textiles, tobacco products, wooden furniture, ammunition, domestic appliances, oil refining
Industrial Growth Rate 4%
Agriculture Products wheat, corn, fruits, vegetables; livestock
Currency Code 1.806
Child Labor - % of children ages 5-14 5%
Child Labor - # of children ages 5-14 24,722
Commercial Bank Prime Lending Rate 5%

Labor Force by Occupation- As reported by Bosnia and Herzegovina

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