Bosnia - Market OverviewBosnia - Market Overview
- Bosnia and Herzegovina (BiH) is a transitional economy with a population of approximately 3.8 million. Per capita GDP in 2015 was $4,670 with total nominal GDP of approximately $18.5 billion. BiH’s Central Bank reports 2016 GDP growth was 2.8 percent. The Central Bank estimates GDP growth in 2017 could range between 2.5 percent and 3.1 percent depending on successful implementation of reforms, while the IMF and EBRD projected growth of 2.5 percent. The World Bank is less pessimistic, projecting growth at 3.2 percent in 2017.
- BiH has been a potential candidate country for European Union (EU) accession since 2003. Although BiH’s progress towards EU accession has been slow, the country’s Stabilization and Association Agreement (SAA) entered into force on June 1, 2015. BiH submitted its formal application for EU membership on February 15, 2016.
- According to the BiH Central Bank, foreign direct investment (FDI) totaled $152 million in the first nine months of 2016, a 44 percent drop as compared to $272 million in the first nine months of 2015.
- The majority of investments from 1994 through December 2015 came from Austria, Serbia, Croatia, and Russia.
- BiH consists of two entities: the Federation of BiH (the Federation) and the Republika Srpska (RS). A third, smaller area, the Brčko District, operates under a separate administration. The Federation is further divided into ten cantons, each with its own government and responsibilities. Both entities and the Brčko District are also comprised of municipalities. As a result, BiH has a multi-tiered legal and regulatory framework that is often duplicative and contradictory and creates opportunities for corruption.
- BiH imports almost twice as much as it exports: 2016 imports totaled $9.1 billion with exports of $5.3 billion. In 2015, U.S. exports to BiH totaled $185 million with BiH exports to the United States valued at $41 million. U.S. products and services held a 2.0 percent share of total BiH imports in 2015.
- U.S. exports to BiH are primarily in the areas of computer and electronic products, agricultural products, machinery and transport equipment, and raw materials for industrial processing. Primary BiH exports to the United States are leather products, apparel manufacturing products, furniture and fixtures, and petroleum and coal products. BiH operates a currency board arrangement by which the Bosnian Convertible Mark (KM) is pegged to the euro (One Euro = KM 1.958). As a result, the Convertible Mark is one of the most stable currencies in Southeast Europe.
Bosnia and Herzegovina Trade Development and Promotion