Bosnia and Herzegovina

bosnia-herzegovina

Quick facts:

Territory 51,197 km2
Population 3.83 million (2013)
Currency Convertible mark (BAM)
Capital Sarajevo
Official language Bosnian, Croatian and Serbian
Memberships Council of Europe and Mediterranean Union
Real GDP per capita 3,513 EUR per capita (2013)
Growth of GDP, % -0,7% in 2012 Forecast: 1,3% in 2013, 3,6% in 2014, 3,9% in 2015
Average gross salary 1293 BAM / EUR (Aug 2013)
VAT rate 10% in FBiH and 10% in RS
Company Income Tax 17% in FBiH and 17% in RS
Phone code +387
Top domain .ba

Apart from Macedonia, Bosnia and Herzegovina is the poorest country among the former Yugoslav republics. As with most CEE economies, Bosnia experienced significant GDP growth prior to the global recession. The economy contracted in 2009 by 2.9% and has since that time been gradually picking up (estimated 2.2% in 2011). One of the biggest challenges for Bosnia is reducing the very high unemployment rate, which is estimated to be at a level of approx. 27%. The inflation rate is under control, and according to estimates amounted to 4.0% in 2011. The FDI level in Bosnia was quite high prior to the global crisis, e.g. in 2007 it reached 13.7% of GDP. Since that time, however, FDI share in GDP has gradually fallen until reaching 0.4% in 2010. The most popular industries attracting FDI are manufacturing and banking. The standard VAT rate is 17%, whereas CIT amounts to 10%.