Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. Successful implementation of a value-added tax in 2006 provided a predictable source of revenue for the government and helped rein in gray market activity. Banking reform accelerated in 2001, resulted with a significant inflow of foreign banks (foreign ownership currently stands at 85% of the banking sector) providing businesses with easier access to capital and a better range of banking services. The convertible mark or BAM, the national currency introduced in 1998, pegged to the euro, is one of the most stable currencies in Southeast Europe.
Bosnia's private sector is growing and foreign investment is slowly increasing, but government spending, at nearly 50% of adjusted GDP, remains high because of redundant government offices at the state, entity and municipal level. A sizeable current account deficit and high unemployment rate remain the two most serious macroeconomic problems. The war Bosnia and Herzegovina experienced in the 1990’s caused striking changes to its economy. The country has to initiate economic reforms and at the same time rebuild many of its infrastructures. After 1995 the country has experienced a reconstruction phase with large aid inflows and strong economic growth rates. GDP per capita is estimated at about 6.300$ for 2009, which classifies Bosnia and Herzegovina as a lower middle-income economy. BiH's top economic priorities are: acceleration of EU integration; strengthening the fiscal system; public administration reform; World Trade Organization (WTO) membership; and securing economic growth by fostering a dynamic, competitive private sector.

Labor force:
1.863 million (2007)
country comparison to the world: 123

Labor force by occupation:
agriculture: 20.5%
industry: 32.6%
services: 47% (2008)

Unemployment rate:
40% (2009 est.)
country comparison to the world: 185
29% (2007 est.)
note: official rate; gray economy may reduce actual unemployment to 25-30%

Population below poverty line:
25% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 27.4% (2004)

Distribution of family income – Gini index
56.2 (2007)
country comparison to the world: 11

Budget: revenues: $7.814 billion
expenditures: $8.571 billion (2009 est.)

Public debt:
43% of GDP (2009 est.)
country comparison to the world: 63
40% of GDP (2008 est.)

Inflation rate (consumer prices):
0.6% (2009 est.)
country comparison to the world: 34
7.3% (2008 est.)

Commercial bank prime lending rate:
6.98% (31 December 2008)
country comparison to the world: 126
7.17% (31 December 2007)

Stock of money:
$4.49 billion (31 December 2008)
country comparison to the world: 64
$5.13 billion (31 December 2007)

Stock of quasi money:
$5.614 billion (31 December 2008)
country comparison to the world: 70
$5.597 billion (31 December 2007)

Stock of domestic credit:
$10.26 billion (31 December 2008)
country comparison to the world: 77
$8.895 billion (31 December 2007)

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

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:
11.6% (2008 est.)
country comparison to the world: 4

Electricity – production:
11.32 billion kWh (2007 est.)
country comparison to the world: 88

Electricity – consumption:
8.488 billion kWh (2007 est.)
country comparison to the world: 92

Electricity – exports:
4.344 billion kWh (2007 est.)

Electricity – imports:
3.743 billion kWh (2007 est.)

GDP (purchasing power parity)
$29.07 billion (2009 est.)
country comparison to the world: 106
$30.09 billion (2008 est.)
$28.55 billion (2007 est.)
note: data are in 2009 US dollars
Bosnia has a large informal sector that may be as much as 50% of official GDP
$17.16 billion (2009 est.)

GDP (real growth rate)
-3.4% (2009 est.)
country comparison to the world: 168
5.4% (2008 est.)
6% (2007 est.)

GDP (per capita)
$6,300 (2009 est.)
country comparison to the world: 132
$6,600 (2008 est.)
$6,300 (2007 est.)
note: data are in 2009 US dollars

GDP (composition by sector):
agriculture: 10.2%
industry: 23.9%
services: 66% (2006 est.)

Oil - production:
0 bbl/day (2008 est.)
country comparison to the world: 116

Oil - consumption:
29,000 bbl/day (2008 est.)
country comparison to the world: 113

Oil - exports:

192 bbl/day (2007 est.)
country comparison to the world: 134

Oil - imports:
25,990 bbl/day (2007 est.)
country comparison to the world: 104

Oil - proved reserves:
0 bbl (1 January 2009 est.)
country comparison to the world: 199

Natural gas - production:
0 cu m (2008 est.)
country comparison to the world: 205

Natural gas - consumption:
310 million cu m (2008 est.)
country comparison to the world: 97

Natural gas - exports:
0 cu m (2008 est.)
country comparison to the world: 51

Natural gas - imports:
310 million cu m (2008 est.)
country comparison to the world: 62

Natural gas - proved reserves:
0 cu m (1 January 2009 est.)
country comparison to the world: 201

Current account balance:
-$1.599 billion (2009 est.)
country comparison to the world: 143
-$2.764 billion (2008 est.)

Exports:
$3.95 billion (2009 est.)
country comparison to the world: 112
$5.194 billion (2008 est.)

Exports - commodities:
metals, clothing, wood products

Exports - partners:
Croatia 20.7%, Slovenia 16.7%, Italy 16.6%, Germany 13%, Austria 10.3%, Hungary 4.8% (2008)

Imports:
$8.82 billion (2009 est.)
country comparison to the world: 92
$12.29 billion (2008 est.)

Imports - commodities:
machinery and equipment, chemicals, fuels, foodstuffs

Imports - partners:
Croatia 24.3%, Slovenia 12.6%, Germany 12.1%, Italy 10.4%, Hungary 6.5%, Turkey 6.4%, Austria 6.2% (2008)

Reserves of foreign exchange and gold:
$3.8 billion (31 December 2009 est.)
country comparison to the world: 75
$3.516 billion (31 December 2008 est.)

Debt - external:
$8.415 billion (31 December 2009 est.)
country comparison to the world: 84
$7.388 billion (31 December 2008 est.)

Exchange rates:
konvertibilna markas (BAM) per US dollar - 1.4352 (2009), 1.3083 (2008), 1.4419 (2007), 1.5576 (2006), 1.5727 (2005)
note: the convertible mark is pegged to the euro