Bosnia and Herzegovina overview

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In Bosnia and Herzegovina we focus on:

Restructuring and expansion of the local private sector: Bosnia and Herzegovina has a strong industrial heritage, an abundant supply of energy, and significant resources to support processing industries. The EBRD will target local and foreign companies for investments in the country and provide financing for restructuring and expansion of smaller local companies. We will provide SME credit lines through local banks, microfinance loans and non-financial support.

Forging closer linkages with wider regional markets: A small open economy such as Bosnia and Herzegovina's can reach its full economic potential only by integrating closely with wider regional markets. Regional integration, both physical and commercial, will become even more important in the new strategy period as Bosnia and Herzegovina now has a border with the EU as of 1 July 2013, following Croatia’s accession to the EU. The EBRD will support private investments, increased trade flows and infrastructure improvements deepening regional integration. We will encourage greater private sector involvement in public infrastructure upgrades and put a strong emphasis on improvements of standards towards EU norms.

Promoting a more efficient and sustainable use of resources: Public entities and private companies make very inefficient use of existing resources, resulting in unnecessarily high energy costs and significant environmental damage. To support more efficient and sustainable use of resources, the Bank will focus on sustainable energy investments with high demonstration effects. The Bank will provide direct financing for energy and resource efficiency improvements for large corporate clients, both in the private and public sectors, and for the restructuring and commercialisation of municipal utility companies. The Bank will continue an active policy dialogue on sustainable use of resources, using technical assistance, in close cooperation with other donors.
The EBRD’s latest Bosnia and Herzegovina strategy was adopted on 15 January 2014

EBRD forecast for Bosnia and Herzegovina’s real GDP Growth in 2015 2.8%

EBRD forecast for Bosnia and Herzegovina's real GDP growth in 2016 3.0%

Bosnia and Herzegovina has continued to show considerable resilience in 2015. In the first quarter, GDP grew strongly at 2.1 per cent year-on-year, with particularly robust growth in wholesale and retail trade, public administration and construction, while growth in the second quarter accelerated to 4.4 per cent year-on-year (helped by a low base effect from last year’s floods). The authorities are currently negotiating on a new agreement with the IMF which, if agreed, would be supportive of macroeconomic stability. Governments at all levels in Bosnia and Herzegovina have committed to a new “Reform Agenda” which should lead to important and long-delayed structural reforms. We expect growth of around 2.8 per cent in 2015 and 3 per cent in 2016. However, fiscal risks and possible political paralysis remain significant downside risks.
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