INVESTMENTS IN BOSNIA-HERZEGOVINA

Bosnia and Herzegovina consists essentially of two semi-state entities, the Serb Republic (Republika Srbska, capital Banja Luka) and the Croat-Muslim Federation (capital Sarajevo).
In a consolidated level, the country has a per capita income of around 9,900 dollars, mainly due to the extremely high unemployment rate (43.90%), although the black economy is a very large proportion of total economic activity.
The financial data and the overall growth are more favourable for the Bosnian Serb part of the country than that of the Croat-Muslim.
The most important advantage is the surplus of energy, which is presented mainly because the whole country is crossed by major tributaries of the Sava river, but also of the Sava itself, where several hydroelectric dams have been constructed. The energy surplus is exported, improving the deficit in the trade balance of the country.
The banking system of the country is controlled by foreign banks and is sufficiently organized. Unfortunately, no bank of Greek interests is active in the country.
One of the major advantages of Bosnia, is the fact that the currency risk is limited, since the local currency (KM) is pegged to the euro at a ratio of 1:1,96.
As a result of the above fact is that the average lending rate on local commercial banks are ranging around 6.64%.
The taxation of business profits amounts to 10%, one of the lowest in the Balkans, the maximum level of the income tax at 15% and correspondingly the maximum level of VAT at 17%.

BOSNIA HERZEGOVINA

2014

G.D.P. in purchasing power terms (billion $)

$38,29

G.D.P. in nominal values (billion $)

$18,17

G.D.P. growth in 2014

1,10%

Per capita G.D.P. in purchasing power terms

$9,900

Investments in fixed assets as % of the G.D.P.

18,30%

Inflation rate

-0,90%

Total borrowing of the economic units (bil. $)

$11,75

Exports (bil. $)

$4,49

Imports (bil. $)

$9,982

Work Force (bil.)

1,47 bil.

Unemployment rate

43,90%

% of people under the poverty threshold

17,20%

Energy production (bil.)

16,3 kWh

Energy consumption (bil.)

12,56 kWh

State budget incomes (bil. $)

$8,774

State budget expenditures (bil. $)

$9,349

State budget deficit as a % of the G.D.P.

-3,20%

Tax incomes as a % of the GDP

48,30%

Public Debt as a % of the GDP

44,80%

Foreign Dept (bil $)

$11,2

Lending interest rate of commercial banks

6,64%

Corporate tax rate

10%

Highest income tax rate

10%

Highest VAT rate

17%

Insurance Contributions for employee

33%

Insurance Contributions for employer

10,50%

Greek investments are extremely welcome in the Bosnian Serb part of the country and usually treated with scepticism in the corresponding Croatia-Muslim part.
Areas that are considered of particular interest for investment are the wood industry, energy and trade.

 

Do you know that...

  • The European Bank for Reconstruction and Development adopted a three-year strategy for Bulgaria, which will focus on restructuring the power sector, strengthening the infrastructure and developing the country's financial markets.

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