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IRREPLACEABLE GUIDELINE
FOR INVESTORS IN
SOUTH EAST EUROPE

   
  xPLICIT
    SBS - IPS
  xPRESSION
  xECUTIVE
    Article 1
    Article 2
  xCLUSIVE
    Article 1
    Article 2
  xPERIENCE
    Article 1
    Article 2
  xPLORER
    Article 1
    Article 2
  xHIBITION
    Article 1
    Article 2
  xCANGE
  xTREME
    Article 1
    Article 2
  xPERT
    Article 1
    Article 2
BOSNIA AND HERZEGOVINA:
Area: total: 51,129 sq km
land: 51,129 sq km
water: 0 sq km
Land boundaries: total: 1,459 km
border countries: Croatia 932 km, Montenegro 225 km, Serbia 302 km
Coastline: 20 km
Natural resources: coal, iron ore, bauxite, copper, lead, zinc, chromite, cobalt, manganese, nickel, clay, gypsum, salt, sand, forests, hydropower
Population: 4,498,976

0-14 years: 15.5% (male 359,739/female 336,978)
15-64 years: 70.1% (male 1,590,923/female 1,564,665)
65 years and over: 14.4% (male 265,637/female 381,034)
Administrative divisions: 2 first-order administrative divisions and 1 internationally supervised district* - Brcko district (Brcko Distrikt)*, the Bosniak/Croat Federation of Bosnia and Herzegovina (Federacija Bosna i Hercegovina) and the Bosnian Serb-led Republika Srpska; note - Brcko district is in northeastern Bosnia and is an administrative unit under the sovereignty of Bosnia and Herzegovina; the district remains under international supervision
International organization participation: BIS, CE, CEI, EBRD, FAO, G-77, IAEA, IBRD, ICAO, ICCt, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, MIGA, MONUC, NAM (guest), OAS (observer), OIC (observer), OPCW, OSCE, SECI, UN, UNCTAD, UNESCO, UNIDO, UNMEE, UPU, WHO, WIPO, WMO, WToO, WTO (observer)
Economy overview: Bosnia and Herzegovina ranked next to 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 remains greatly overstaffed, a holdover from the socialist economic structure of Yugoslavia. TITO had pushed the development of military industries in the republic with the result that Bosnia was saddled with a host of industrial firms with little commercial potential. The interethnic warfare in Bosnia caused production to plummet by 80% from 1992 to 1995 and unemployment to soar. 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. Part of the lag in output was made up in 2003-05. National-level statistics are limited and do not capture the large share of black market activity. The konvertibilna marka (convertible mark or BAM)- the national currency introduced in 1998 - is pegged to the euro, and confidence in the currency and the banking sector has increased. Implementation of privatization, however, has been slow, and local entities only reluctantly support national-level institutions. Banking reform accelerated in 2001 as all the Communist-era payments bureaus were shut down; foreign banks, primarily from Western Europe, now control most of the banking sector. A sizeable current account deficit and high unemployment rate remain the two most serious economic problems. 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 official exchange rate: $8.495 billion
real growth rate: 5%
per capita (PPP): $5,200
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: 5.5%
Exports: $2.7 billion f.o.b.
Exports - partners: Croatia 18.4%, Italy 17.1%, Slovenia 14.6%, Germany 12.8%, Austria 6.5%, Hungary 5.2%, China 4.2%
Imports: $6.8 billion f.o.b.
Croatia 24.7%, Germany 13.7%, Slovenia 13.1%, Italy 11%, Austria 6.9%, Hungary 5.5%
Debt - external: $3.116 billion



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