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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 6 April 2022

EBRD forecast for Bosnia and Herzegovina’s real GDP Growth in 2023 2.0%

EBRD forecast for Bosnia and Herzegovina's real GDP growth in 2024 3.0%

GDP growth in Bosnia and Herzegovina decelerated to 3.9 per cent in 2022. The slowdown occurred in the second half of the year when industrial activity entered a deepening contraction and rising inflation weighed on purchasing power of households. The net export position deteriorated in the second half of 2022 and the first quarter of 2023 (in year-on-year terms), reflecting the deteriorating external environment from the third quarter of 2022.

Inflation moderated from a peak of 17.4 per cent year-on-year in October 2022 to 12.9 per cent in February 2023. GDP Growth is expected to moderate further to 2 per cent in 2023, as the growth slowdown in Eurozone markets continues to weigh on exports and private consumption growth remains muted, before rising to 3 per cent in 2024 on the back of an improved global outlook.



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