D 2.2 Bosnia and Herzegovina Review

D 2.2 Bosnia and Herzegovina Review

Lead beneficiary: FINCENT

Delivery date: 14/02/2017

Revision: 3.6

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General information about the country:

Official name: Bosnia and Herzegovina1

Date of formation: 1 March 1992

Capital: Sarajevo

Population: 3,867,055 (July 2015)

Population density: 74.6 people/sq km (2014)

Total area: 51,197 sq km

Geography: Southeast Europe; Geographic coordinates: 44 00 N, 18 00 E

Neighbours: Serbia, Montenegro, Croatia

Languages: Bosnian (official), Croatian (official), Serbian (official)

Religion: Muslim 40%, Orthodox 31%, Roman Catholic 15%, other 14%

Ethnic mix: Bosniak 48.4%, Serb 32.7%, Croat 14.6%, other 4.3%

Government: Federal democratic republic

Economy: Bosnia has a transitional economy with limited market reforms. The economy relies heavily on the export of metals, energy, textiles and furniture as well as on remittances and foreign aid. A highly decentralised government hampers economic policy coordination and reform, while excessive bureaucracy and a segmented market discourage foreign investment. Government spending – including transfer payments – remains high, at roughly 40% of GDP, because of redundant government offices at the national, sub-national and municipal level. High unemployment (43.9% in 2014) remains the most serious macroeconomic problem.

Export earnings: $3.942 billion (2015); country comparison to the world: 118; exports – commodities: metals, clothing, wood products

Currency: convertible mark or BAM