Bosnia and Herzegovina overview


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 2016 3.0%

EBRD forecast for Bosnia and Herzegovina's real GDP growth in 2017 3.0%

Bosnia and Herzegovina’s economy has continued to show considerable resilience in 2015, with the strongest level of growth (estimated at 3.2 per cent) since 2008, helped by a strong performance of manufacturing and a recovery of agriculture after flood damage in 2014. The authorities are currently negotiating a new agreement with the IMF which, if agreed, would be supportive of macroeconomic stability. In July 2015 governments at all levels committed to a new “Reform Agenda” which should lead to important and long-delayed structural reforms. We expect growth of 3 per cent in 2016 and 2017. However, fiscal risks and possible political paralysis remain significant downside risks.