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 5 July 2017

Bosnia and Herzegovina 's policy response to the coronavirus crisis

The EBRD is monitoring Bosnia and Herzegovina 's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

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EBRD forecast for Bosnia and Herzegovina’s real GDP Growth in 2020 -4.5%

EBRD forecast for Bosnia and Herzegovina's real GDP growth in 2021 6.0%

Growth in Bosnia and Herzegovina decelerated to 2.6 per cent in 2019, from 3.7 per cent in 2018, primarily due to a (mild) decline in industrial and agricultural output. On the expenditure side, the economy saw a fall in exports, especially those of base metals and mineral products. At the same time, private consumption growth picked up to 2.4 per cent year-on-year, around one percentage point above the rate seen in the previous two years.
GDP is expected to decline by 4.5 per cent in 2020 and rebound by 6.0 per cent in 2021. A likely drop in remittances (which usually amount to 11 per cent of GDP) will negatively affect consumption, while the closure of borders and factories will constrain exports and imports of production inputs from the main trading partners, notably in the eurozone.
Sectors that might be most strongly hit by the virus outbreak include manufacturing (especially, textiles, footwear and furniture industries, as most of them rely on contracts with Italian companies), transport, accommodation and food services, and construction.


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