Bosnia and Herzegovina Economy

Bosnia and Herzegovina Economy  | read this item

Bosnia and Herzegovina’s economy was defined as 53.7% free by the Heritage Foundation in the year 2008. With such an economy status, the country comes 121 in the world rank list. In Europe that includes 41 countries, Bosnia is placed 38 in the list of the free economies.

Bosnia and Herzegovina has been ranked low due to its overcrowded government and unsecured property rights. At the same time, the country enjoys a big trade and financial freedom. Bosnia’s economy is characterized by efficient privatization of banking industry.

The country’s national GDP amounted to $27.7 billion in the year 2007. The growth from the previous year made up 6%. GDP per capita was estimated at $6,100, as of 2007. The main part share of the country’s GDP belongs to the services sector, which is followed by industry and agriculture.

Average inflation rate during the period 2004—2006 amounted to 4.5%. However, it is reported that the figure went down to 1.6% in the year 2007.

The exported goods were estimated at $9.947 billion in 2007. One of the major importers was Croatia. Bosnia in its turn imported mainly chemicals, machinery, fuels and food products.

By the year 2007, the export had grown to about $4.243 billion. Over 20% of the goods went to Croatia.

One of the main problems in Bosnia and Herzegovina is corruption. It is often the case with business registration procedures. Creation of job places is a very difficult and problematic issue as well. This, of course, can not but has an impact on productivity. Another big problem in the country is property rights. Property registrations can not be relied upon, which creates a number of disputes in court that are never settled properly.

There are many problems Bosnia and Herzegovina is to overcome in order to become economically stronger. Here belong unemployment, corruption and unprotected property rights. However, the things with trade and financial freedoms are much better. That provides a basis for future development and progress.

Topics: bosnia and herzegovina, economy, free economies, gdp per capita, world rank