Bosnia - Herzegovina

In 1992, Bosnia and Herzegovina became independent of Yugoslavia. The Dayton Peace Accords took place in November 1995 and saw the Bosnians and Croats sign an agreement that brought an end to years of interethnic civil conflict; they also allowed for international boundaries to remain intact as well as the establishment of a joint multi-ethnic and democratic government. In addition, the government was divided into two units, the Bosniak/Croat Federation of Bosnia and Herzegovina and the Bosnian Serb-led Republika Srpska (RS), both of which were responsible for supervising the government’s tasks. In 2004, the NATO-led Stabilization Force, (SFOR), was replaced, by the EUFOR, the European Union peacekeeping troops, with the objective of keeping peace in the country.

Main Airports

Banja Luka (BNX), Mostar (OMO), Sarajevo (SJJ)

U.S. Embassy

Alipašina 43, 71000 Sarajevo
tel.: 387-33-445-700

Statistics

GDP: purchasing power parity:

$22.89 billion

GDP - real growth rate:

5.3% (2005 est.)

GDP - per capita: purchasing power parity:

6,800 (2005 est.)

Inflation rate (consumer prices):

4.4% (2005 est.)

Labor force:

1.026 million (2001)

Exports:

$2.7 billion f.o.b. (2005 est.)

Exports - partners:

Croatia 18.8%, Italy 17.4%, Slovenia 14.9%, Germany 13.1%, Austria 6.6%, Hungary 5.3%, China 4.3% (2005)

Imports:

$6.8 billion f.o.b. (2005 est.)

Imports - partners:

Croatia 25.5%, Germany 14.2%, Slovenia 13.3%, Italy 11%, Austria 7%, Hungary 5.7% (2005)

Population:

4,498,976 (July 2006 est.)

Population growth rate:

1.35% (2006 est.)

Population Below Poverty Line:

25% (2004 est.)

Major Industries:

steel, coal, iron ore, lead, zinc, manganese, bauxite, vehicle assembly, textiles, tobacco products, wooden furniture, tank and aircraft assembly, domestic appliances, oil refining

Employing Workers: 95*

Registering Property: 139*

Enforcing Contracts: 117*

Closing a Business: 69*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Bosnia - Herzegovina	Region
Procedures (number)	12	9.4
Time (days)	54	32

Bosnia - Herzegovina Risk Assessment

Country Rating

Rating: D

A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.

Risk Assessment

Economic growth remained strong in 2007 amid a favourable external environment coupled with strong consumption driven by rising real wages and the expansion of credit. The economy should remain buoyant in 2008 thanks to still-robust domestic demand. Inflation declined sharply in 2007 after the effects of the VAT-introduction the previous year petered out. The fixed nature of the exchange rate should facilitate limiting inflationary pressures in 2008, rising energy and food prices notwithstanding.

The country nonetheless still suffers from many weaknesses including a bloated and inefficient public sector, an over-regulated business environment, and a segmented labour market reflecting to some extent the institutionally and ethnically fragmented context in the country. Efforts will have to be made to improve policy coordination between entities and create a unified economic space. And bank oversight and fiscal prudence need to be strengthened. Exports still lack diversification — with metals, mineral products, and wood representing nearly half of sales abroad — and are still vulnerable to price trends for commodities. The country continues to run high current account deficits albeit limited by expatriate worker remittances.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation