Bosnia and Herzegovina Economy 2001

Economy - overview: Bosnia and Herzegovina ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic in the old Yugoslav federation. Although agriculture is almost all in private hands, farms are small and inefficient, and the republic traditionally is a net importer of food. Industry has been greatly overstaffed, one reflection of the socialist economic structure of Yugoslavia. TITO had pushed the development of military industries in the republic with the result that Bosnia hosted a large share of Yugoslavia's defense plants. The bitter interethnic warfare in Bosnia caused production to plummet by 80% from 1990 to 1995, unemployment to soar, and human misery to multiply. With an uneasy peace in place, output recovered in 1996-98 at high percentage rates from a low base; but output growth slowed appreciably in 1999 and 2000, and GDP remains far below the 1990 level. Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. The marka - the national currency introduced in 1998 - has gained wide acceptance, and the Central Bank of Bosnia and Herzegovina has dramatically increased its reserve holdings. Implementation of privatization, however, has been slower than anticipated. Banking reform accelerated in early 2001 as all the communist-era payments bureaus were shut down. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare for an era of declining assistance.

GDP: purchasing power parity - $6.5 billion (2000 est.)

GDP - real growth rate: 8% (2000 est.)

GDP - per capita: purchasing power parity - $1,700 (2000 est.)

GDP - composition by sector:
agriculture: 19%
industry: 23%
services: 58% (1996 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 8% (2000 est.)

Labor force: 1.026 million

Labor force - by occupation: agriculture NA%, industry NA%, services NA%

Unemployment rate: 35%-40% (1999 est.)

Budget:
revenues: $1.9 billion
expenditures: $2.2 billion, including capital expenditures of $NA (1999 est.)

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

Industrial production growth rate: 10% (2000 est.)

Electricity - production: 2.585 billion kWh (1999)

Electricity - production by source:
fossil fuel: 38.68%
hydro: 61.32%
nuclear: 0%
other: 0% (1999)

Electricity - consumption: 2.684 billion kWh (1999)

Electricity - exports: 150 million kWh (1999)

Electricity - imports: 430 million kWh (1999)

Agriculture - products: wheat, corn, fruits, vegetables; livestock

Exports: $950 million (f.o.b., 2000 est.)

Exports - commodities: NA

Exports - partners: Croatia, Switzerland, Italy, Germany

Imports: $2.45 billion (f.o.b., 2000 est.)

Imports - commodities: NA

Imports - partners: Croatia, Slovenia, Germany, Italy

Debt - external: $3.4 billion (2000 est.)

Economic aid - recipient: $1 billion (1999 est.)

Currency: marka (BAM)

Currency code: BAM

Exchange rates: marka per US dollar - 2.086 (January 2001), 2.124 (2000), 1.837 (1999), 1.760 (1998), 1.734 (1997), 0.015 (1996)

Fiscal year: calendar year

NOTE: The information regarding Bosnia and Herzegovina on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Bosnia and Herzegovina Economy 2001 information contained here. All suggestions for corrections of any errors about Bosnia and Herzegovina Economy 2001 should be addressed to the CIA.