Bosnia and Herzegovina Economy
Is Bosnia and Herzegovina a wealthy 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 have 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?
| Currency Name and Code | Konvertibilna markas (BAM) |
| GDP - Gross Domestic Product (PPP) | $47,050,000,000 (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; the 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 |
| Exchange Rate per US Dollar | 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% |