Bosnia and Herzegovina Business Overview

Business and Economic Overview

Bosnia and Herzegovina are the 100th largest export economy in the world and the 44th most complex economy according to the Economic Complexity Index (ECI). Bosnia and Herzegovina’s total exported goods represent 15.2% of its overall Gross Domestic Product for 2018.

The top ten exports in Bosnia and Herzegovina are:

1. Mineral fuels including oil: $702.5 million
2. Furniture, bedding, lighting, signs, prefab buildings: $677.3 million
3. Wood: $480.5 million
4. Machinery including computers: $461.7 million
5. Footwear: $443 million
6. Aluminium: $436.1 million
7. Articles of iron or steel: $430.1 million
8. Electrical machinery, equipment: $405.7 million
9. Inorganic chemicals: $383.5 million
10. Iron, steel: $379.8 million

The top 5 exporters:

1. Germany- $1,211 million
2. Italy – $1,187 million
3. Serbia – $1,166 million
4. Croatia – $1,053 million
5. China – $683 million

Bosnia and Herzegovina are ranked as the 83rd freest economy in 2019. The economy is driven by post-war reconstruction.  Foreigners investment has until recently been discouraged due to the weak rule of law, market division and excessive bureaucracy although recent efforts to encourage foreign investment have begun. 

The economy relies on its exports, foreign aid and Chinese infrastructure investment. Bosnia and Herzegovina owes 14 percent of their total foreign debt to China. On 7th March 2019 the House of Representatives in Bosnia’s Federation entity adopted a resolution that supports the government’s plan for the construction of a thermal power plant in the north-eastern Bosnian town of Tuzla.

In November 2017, Bosnia and Herzegovina electric power company Elektroprivreda BiH took a 700-million-euro loan from China’s Exim bank to finish the thermal power plant in Tuzla. This is the largest single post-war investment in the country.