The automotive industry, which developed in the 1950s with the production of vehicle components, extended later on to passenger and commercial vehicles, with plants in Sarajevo, Mostar and Banja Luka.
While large amounts of public capital investments poured in during the 1970s, productivity levels remained low, often due to the limited capacity of public managers.
As a result, four large conglomerates emerged in Bosnia and Herzegovina over time: Energoinvest (energy sector), Unis (automotive and defence industry, which partnered with Volkswagen in the early 1970s), Šipad (wood processing) and RMK Zenica (steel industry, later acquired by ArcelorMittal).
Airport Center Sarajevo which will be connected directly to the new airport terminal will offer a great variety of brands, products and services. In 1981 Sarajevo's GDP per capita was 133% of the Yugoslav average. In 2011 Sarajevo's GDP was estimated to be 16.76 billion US$ by the Central Bank of Bosnia, comprising 37% of the total GDP of the country. ===Mostar=== Mostar's economy relies heavily on tourism, aluminum and metal industry, banking services and telecommunication sector.
Sports-related tourism uses the legacy facilities of the 1984 Winter Olympics, especially the skiing facilities on the nearby mountains of Bjelašnica, Igman, Jahorina, Trebević, and Treskavica.
Before the war, Yugoslav premier Ante Marković, made some preparations for privatization, in economy, finance, and industry sectors, but the war ceased development in these actions. The economy suffered heavily from the war in Bosnia and Herzegovina, with over €200 billion in material damages and GDP (excluding services) reduced by 90% between 1990 and 1995.
Making it a growing commercial hub in Bosnia and Hercegovina. ===Banja Luka=== Although the city itself was not directly affected by the Bosnian war in the early 1990s, its economy was.
Bosnia and Herzegovina declared independence from socialist Yugoslavia on 1 March 1992. ==Overview== Bosnia and Herzegovina is an upper middle-income country which has accomplished a great deal since the mid-1990s.
Before the war, Yugoslav premier Ante Marković, made some preparations for privatization, in economy, finance, and industry sectors, but the war ceased development in these actions. The economy suffered heavily from the war in Bosnia and Herzegovina, with over €200 billion in material damages and GDP (excluding services) reduced by 90% between 1990 and 1995.
Due to Bosnia's strict currency board regime attaching the Bosnian mark to the Euro, inflation has remained low in the entire country. With an uneasy peace in place, output recovered in 1996–99 at high percentage rates from a low base; but output growth slowed in 2000–02.
According to World Bank estimates, GDP growth was 62% in the Federation and 25% in the RS in 1996, 35% in the Federation and flat in the RS in 1997, and continued growth in the Federation in 1998. Movement has been slow, but considerable progress has been made in economic reform since peace was re-established.
Still, the country registered a current account deficit of 4.7% of GDP in 2017, decreasing from 5.3% in 2015, resulting from a reduction in its trade deficit, which nevertheless remains large (17.4% of GDP in 2017). A Central Bank of Bosnia and Herzegovina was established in late 1997, debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Bosnia and Herzegovina convertible mark, was introduced in mid-1998.
According to World Bank estimates, GDP growth was 62% in the Federation and 25% in the RS in 1996, 35% in the Federation and flat in the RS in 1997, and continued growth in the Federation in 1998. Movement has been slow, but considerable progress has been made in economic reform since peace was re-established.
Still, the country registered a current account deficit of 4.7% of GDP in 2017, decreasing from 5.3% in 2015, resulting from a reduction in its trade deficit, which nevertheless remains large (17.4% of GDP in 2017). A Central Bank of Bosnia and Herzegovina was established in late 1997, debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Bosnia and Herzegovina convertible mark, was introduced in mid-1998.
According to World Bank estimates, GDP growth was 62% in the Federation and 25% in the RS in 1996, 35% in the Federation and flat in the RS in 1997, and continued growth in the Federation in 1998. Movement has been slow, but considerable progress has been made in economic reform since peace was re-established.
In 1999, the Convertible Mark gained wider acceptance, and the Central Bank dramatically increased its reserve holdings.
Due to Bosnia's strict currency board regime attaching the Bosnian mark to the Euro, inflation has remained low in the entire country. With an uneasy peace in place, output recovered in 1996–99 at high percentage rates from a low base; but output growth slowed in 2000–02.
Banking reform accelerated in 2001 as all ; foreign banks, primarily from Western Europe, now control most of the banking sector.
In 2002, the trading began on the newly established Banja Luka Stock Exchange.
Companies based in Sarajevo include B&H Airlines, BH Telecom, Bosnalijek, Energopetrol, Sarajevo Tobacco Factory, and Sarajevska Pivara (Sarajevo Brewery). Sarajevo has a strong tourist industry and was named by Lonely Planet one of the top 50 "Best Cities in the World" in 2006.
This was seen with the global economic crisis, which pushed Bosnia and Herzegovina into recession in 2009 and 2012 (with GDP growth of -3% and -0.8%, respectively) and severe floods in 2014, which caused damage of approximately 15% of GDP.
Airport Center Sarajevo which will be connected directly to the new airport terminal will offer a great variety of brands, products and services. In 1981 Sarajevo's GDP per capita was 133% of the Yugoslav average. In 2011 Sarajevo's GDP was estimated to be 16.76 billion US$ by the Central Bank of Bosnia, comprising 37% of the total GDP of the country. ===Mostar=== Mostar's economy relies heavily on tourism, aluminum and metal industry, banking services and telecommunication sector.
This was seen with the global economic crisis, which pushed Bosnia and Herzegovina into recession in 2009 and 2012 (with GDP growth of -3% and -0.8%, respectively) and severe floods in 2014, which caused damage of approximately 15% of GDP.
More than 50% of the total population and the economic activity of Bosnia and Herzegovina lies within the zone of influence along this route. As of August 2018, 200 km motorway has been completed. Due to annual growth of nearly 10% the Sarajevo International Airport extension of the passenger terminal, together with upgrading and expanding the taxiway and apron is planned to start in Fall 2012.
This was seen with the global economic crisis, which pushed Bosnia and Herzegovina into recession in 2009 and 2012 (with GDP growth of -3% and -0.8%, respectively) and severe floods in 2014, which caused damage of approximately 15% of GDP.
The Sarajevo City Center is one of the biggest shopping centres in South-East Europe, after its completion in 2014.
After the 2014 riots, both administrations have shyly started the reform, dealing with some of the many pressing issues to local economy, but the overall process is still considered slow and tenuous by the populace and local as well as foreign economic analysts. ==Infrastructure== The Bosnian government has issued an international tender for the construction of the 350 km long Corridor 5c in Bosnia and Herzegovina which will passes along the route Budapest-Osijek-Sarajevo-Ploče.
Since 2015, annual GDP growth has increased to more than 3%.
Still, the country registered a current account deficit of 4.7% of GDP in 2017, decreasing from 5.3% in 2015, resulting from a reduction in its trade deficit, which nevertheless remains large (17.4% of GDP in 2017). A Central Bank of Bosnia and Herzegovina was established in late 1997, debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Bosnia and Herzegovina convertible mark, was introduced in mid-1998.
In 2020, the unemployment rate should go down to 18.3%. On December 31, 2017, Council of Ministers of Bosnia and Herzegovina issued the report on public debt of Bosnia and Herzegovina, stating that the public debt was reduced by €389.97 million, or by more than 6% when compared to December 31, 2016.
Still, the country registered a current account deficit of 4.7% of GDP in 2017, decreasing from 5.3% in 2015, resulting from a reduction in its trade deficit, which nevertheless remains large (17.4% of GDP in 2017). A Central Bank of Bosnia and Herzegovina was established in late 1997, debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Bosnia and Herzegovina convertible mark, was introduced in mid-1998.
The total volume of foreign trade in 2017 amounted to €14.97 billion and increased by 14% compared to the previous year.
In 2017, Bosnia and Herzegovina mostly exported car seats, electricity, processed wood, aluminum and furniture.
In the same year, it mostly imported crude oil, automobiles, motor oil, coal and briquettes. The unemployment rate in 2017 was 20.5%, but The Vienna Institute for International Economic Studies is predicting falling unemployment rate for the next few years.
In 2020, the unemployment rate should go down to 18.3%. On December 31, 2017, Council of Ministers of Bosnia and Herzegovina issued the report on public debt of Bosnia and Herzegovina, stating that the public debt was reduced by €389.97 million, or by more than 6% when compared to December 31, 2016.
Also, 71.5% of the tourists came from foreign countries. ===2018=== In 2018, Bosnia and Herzegovina exported goods worth 11.9 billion KM (€6.07 billion), which is 7.43% higher than in the same period in 2017, while imports amounted to 19.27 billion KM (€9.83 billion), which is 5.47% higher. The average price of new apartments sold in the country in the first 6 months of 2018 is 1,639 km (€886.31) per square meter.
In 2018, the unemployment should be 19.4% and it should further fall to 18.8% in 2019.
Also, 71.5% of the tourists came from foreign countries. ===2018=== In 2018, Bosnia and Herzegovina exported goods worth 11.9 billion KM (€6.07 billion), which is 7.43% higher than in the same period in 2017, while imports amounted to 19.27 billion KM (€9.83 billion), which is 5.47% higher. The average price of new apartments sold in the country in the first 6 months of 2018 is 1,639 km (€886.31) per square meter.
This represents a jump of 3.5% from the previous year. On June 30, 2018, public debt of Bosnia and Herzegovina amounted to about €6.04 billion, of which external debt is 70.56 percent, while the internal debt is 29.4 percent of total public indebtedness.
The share of public debt in gross domestic product is 34.92 percent. In 2018, 1,465,412 tourists visited Bosnia-Herzegovina, an increase of 12.1%, and had 3,040,190 overnight hotel stays, a 13.5% increase from the previous year.
This position represents some progress relative to the 91st place in 2018.
More than 50% of the total population and the economic activity of Bosnia and Herzegovina lies within the zone of influence along this route. As of August 2018, 200 km motorway has been completed. Due to annual growth of nearly 10% the Sarajevo International Airport extension of the passenger terminal, together with upgrading and expanding the taxiway and apron is planned to start in Fall 2012.
In 2018, the unemployment should be 19.4% and it should further fall to 18.8% in 2019.
In 2020, the unemployment rate should go down to 18.3%. On December 31, 2017, Council of Ministers of Bosnia and Herzegovina issued the report on public debt of Bosnia and Herzegovina, stating that the public debt was reduced by €389.97 million, or by more than 6% when compared to December 31, 2016.
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