📰 Bosnia and Herzegovina · page 5

Bosnia and Herzegovina is the 61st most peaceful country in the world, according to the 2024 Global Peace Index.[170]314

Military

Main article: Armed Forces of Bosnia and Herzegovina

**Branches of the Bosnian-Herzegovian Armed Forces315

The Armed Forces of Bosnia and Herzegovina (OSBiH) were unified into a single entity in 2005, with the merger of the Army of the Federation of Bosnia and Herzegovina and the Army of Republika Srpska, which had defended their respective regions.[171]316 The Ministry of Defence was formed in 2004.[172]317

The Bosnian military consists of the Bosnian Ground Forces and Air Force and Air Defense.[173]318 The Ground Forces number 7,200 active and 5,000 reserve personnel.[174]319 They are armed with a mix of American, Yugoslav, Soviet, and European-made weaponry, vehicles, and military equipment.320 The Air Force and Air Defense Forces have 1,500 personnel and about 62 aircraft.321 The Air Defense Forces operate MANPADS hand-held missiles, surface-to-air missile (SAM) batteries, anti-aircraft cannons, and radar.322 The Army has recently adopted remodeled MARPAT uniforms, used by Bosnian soldiers serving with the International Security Assistance Force (ISAF) in Afghanistan corpus.323 A domestic production program is now underway to ensure that army units are equipped with the correct ammunition.[175]324

Beginning in 2007, the Ministry of Defence undertook the army's first ever international assistance mission, enlisting the military to serve with ISAF peace missions to Afghanistan, Iraq corpus and the Democratic Republic of the Congo corpus in 2007.325 Five officers, acting as officers/advisors, served in the Democratic Republic of the Congo.326 45 soldiers, mostly acting as base security and medical assistants, served in Afghanistan.327 85 Bosnian soldiers served as base security in Iraq, occasionally conducting infantry patrols there as well.328 All three deployed groups have been commended by their respective international forces as well as the Ministry of Defence of Bosnia and Herzegovina.329 The international assistance operations are still ongoing.[176]330

The Air Force and Anti-Aircraft Defence of Bosnia and Herzegovina was formed when elements of the Army of the Federation of Bosnia and Herzegovina and the Republika Srpska Air Force were merged in 2006.331 The Air Force has seen improvements in the last few years with added funds for aircraft repairs and improved cooperation with the Ground Forces as well as to the citizens of the country.332 The Ministry of Defence is pursuing the acquisition of new aircraft including helicopters and perhaps even fighter jets.[177]333

Economy

Main article: Economy of Bosnia and Herzegovina

See also: List of companies of Bosnia and Herzegovina

During the Bosnian War, the economy suffered €200 billion in material damages, roughly €356.80 billion in 2025 (inflation adjusted).[178][179]334 Bosnia and Herzegovina faces the dual-problem of rebuilding a war-torn country and introducing transitional liberal market reforms to its formerly mixed economy.335 One legacy of the previous era is a strong industry; under former republic president Džemal Bijedić and Yugoslav President Josip Broz Tito, metal industries were promoted in the republic, resulting in the development of a large share of Yugoslavia's plants; SR Bosnia and Herzegovina had a very strong industrial export oriented economy in the 1970s and 1980s, with large scale exports worth millions of US$.336

For most of Bosnia's history, agriculture has been conducted on privately owned farms; fresh food has traditionally been exported from the republic.[180]337

The war in the 1990s, caused a dramatic change in the Bosnian economy.[181]338 GDP fell by 60% and the destruction of physical infrastructure devastated the economy.[182]339 With much of the production capacity unrestored, the Bosnian economy still faces considerable difficulties.340 Figures show GDP and per capita income increased 10% from 2003 to 2004; this and Bosnia's shrinking national debt being negative trends, and high unemployment 38.7% and a large trade deficit remain cause for concern.341

The national currency is the (Euro-pegged) convertible mark (KM), controlled by the currency board.342 Annual inflation is the lowest relative to other countries in the region at 1.9% in 2004.[183]343 The international debt was $5.1 billion (as of 31 December 2014).344 Real GDP growth rate was 5% for 2004 according to the Central Bank of Bosnia and Herzegovina and Statistical Office of Bosnia and Herzegovina.345

Bosnia and Herzegovina has displayed positive progress in the previous years, which decisively moved its place from the lowest income equality rank of income equality rankings fourteen out of 193 nations.[184]346

According to Eurostat data, Bosnia and Herzegovina's PPS GDP per capita stood at 29 per cent of the EU average in 2010.[185]347

The International Monetary Fund (IMF) announced a loan to Bosnia worth US$500 million to be delivered by Stand-By Arrangement.348 This was scheduled to be approved in September 2012.[186]349

The United States Embassy in Sarajevo corpus produces the Country Commercial Guide – an annual report that delivers a comprehensive look at Bosnia and Herzegovina's commercial and economic environment, using economic, political, and market analysis.350

By some estimates, grey economy is 25.5% of GDP.[187]351

In 2017, exports grew by 17% when compared to the previous year, totaling €5.65 billion.[188]352 The total volume of foreign trade in 2017 amounted to €14.97 billion and increased by 14% compared to the previous year.353 Imports of goods increased by 12% and amounted to €9.32 billion.354 The coverage of imports by exports increased by 3% compared to the previous year and now it is 61 percent.355 In 2017, Bosnia and Herzegovina mostly exported car seats, electricity, processed wood, aluminium and furniture.356 In the same year, it mostly imported crude oil, automobiles, motor oil, coal and briquettes.[189]357

The unemployment rate in 2017 was 20.5%, but The Vienna Institute for International Economic Studies is predicting falling unemployment rate for the next few years.358 In 2018, the unemployment should be 19.4% and it should further fall to 18.8% in 2019.359 In 2020, the unemployment rate should go down to 18.3%.[190]360

On 31 December 2017, the Council of Ministers of Bosnia and Herzegovina issued the report on public debt of Bosnia and Herzegovina, stating the public debt was reduced by €389.97 million, or by more than 6% when compared to 31 December 2016.361 By the end of 2017, public debt was €5.92 billion, which amounted to 35.6 percent of GDP.[191]362

as of 2017 December 31, there were 32,292 registered companies in the country, which together had revenues of €33.572 billion that same year.[192]363

In 2017, the country received €397.35 million in foreign direct investment, which equals to 2.5% of the GDP.[193]364

In 2017, Bosnia and Herzegovina ranked third in the world in terms of the number of new jobs created by foreign investment, relative to the number of inhabitants.[194][195]365

In 2018, Bosnia and Herzegovina exported goods worth 11.9 billion KM (€6.07 billion), which is 7.43% higher than in the same period in 2017, while imports amounted to 19.27 billion KM (€9.83 billion), which is 5.47% higher.[196]366

The average price of new apartments sold in the country in the first six months of 2018 is 1,639 km (€886.31) per square metre.367 This represents a jump of 3.5% from the previous year.[197]368

On 30 June 2018, public debt of Bosnia and Herzegovina amounted to about €6.04 billion, of which external debt is 70.56 percent, while the internal debt is 29.4 percent of total public indebtedness.369 The share of public debt in gross domestic product is 34.92 percent.[198]370

In the first 7 months of 2018, 811,660 tourists visited the country, a 12.2% jump when compared to the first 7 months of 2017.[199]371 In the first 11 months of 2018, 1,378,542 tourists visited Bosnia-Herzegovina, an increase of 12.6%, and had 2,871,004 overnight hotel stays, a 13.8% increase from the previous year.372 Also, 71.8% of the tourists came from foreign countries.[200]373 In the first seven months of 2019, 906,788 tourists visited the country, an 11.7% jump from the previous year.[201]374

In 2018, the total value of mergers and acquisitions in Bosnia and Herzegovina amounted to €404.6 million.[202]375

In 2018, 99.5 percent of enterprises in Bosnia and Herzegovina used computers in their business, while 99.3 percent had internet connections, according to a survey conducted by the Bosnia and Herzegovina Statistics Agency.[203]376

In 2018, Bosnia and Herzegovina received 783.4 million KM (€400.64 million) in direct foreign investment, which was equivalent to 2.3% of GDP.[204]377

In 2018, the Central Bank of Bosnia and Herzegovina made a profit of 8,430,875 km (€4,306,347).[205]378

The World Bank predicted that the economy would grow 3.4% in 2019.[206]379

Bosnia and Herzegovina was placed 83rd on the Index of Economic Freedom for 2019.380 The total rating for Bosnia and Herzegovina is 61.9.381 This position represents some progress relative to the 91st place in 2018.382 This result is below the regional level, but still above the global average, making Bosnia and Herzegovina a "moderately free" country.[207]383

On 31 January 2019, total deposits in Bosnian banks were KM 21.9 billion (€11.20 billion), which represents 61.15% of nominal GDP.[208]384

In the second quarter of 2019, the average price of new apartments sold in Bosnia and Herzegovina was 1,606 km (€821.47) per square metre.[209]385

In the first six months of 2019, exports amounted to 5.829 billion KM (€2.98 billion), which is 0.1% less than in the same period of 2018, while imports amounted to 9.779 billion KM (€5.00 billion), which is by 4.5% more than in the same period of the previous year.[210]386

In the first six months of 2019, foreign direct investment amounted to 650.1 million KM (€332.34 million).[211]387

Bosnia and Herzegovina was ranked 80th in the Global Innovation Index in 2024,[212] but its ranking dropped to 92nd in 2025.[213]388

As of 30 November 2023, Bosnia and Herzegovina had 1.3 million registered motor vehicles.[214]389

Tourism

Main article: Tourism in Bosnia and Herzegovina

See also: List of tourist attractions in Sarajevo

According to projections by the World Tourism Organization, Bosnia and Herzegovina had the third highest tourism growth rate in the world between 1995 and 2020.[215][216]390

In 2017, 1,307,319 tourists visited Bosnia and Herzegovina, an increase of 13.7%, and had 2,677,125 overnight hotel stays, a 12.3% increase from the previous year.391 71.5% of the tourists came from foreign countries.[217]392

In 2018, 1.883.772 tourists visited Bosnia and Herzegovina, an increase of 44,1%, and had 3.843.484 overnight hotel stays, a 43.5% increase from the previous year.393 Also, 71.2% of the tourists came from foreign countries.[218]394

In 2006, when ranking the best cities in the world, Lonely Planet placed Sarajevo corpus, the national capital[1] and host of the 1984 Winter Olympics, as #43 on the list.[219]395 Tourism in Sarajevo is chiefly focused on historical, religious, and cultural aspects.396 In 2010, Lonely Planet's "Best in Travel" nominated it as one of the top ten cities to visit that year.[220]397 Sarajevo also won travel blog Foxnomad's "Best City to Visit" competition in 2012, beating more than one hundred other cities around the entire world.[221]398

Međugorje has become one of the most popular pilgrimage sites for Catholics from around the world and has turned into Europe's third most important religious place, where each year more than 1 million people visit.[222]399 It has been estimated that 30 million pilgrims have come to Međugorje since the reputed apparitions began in 1981.[223]400 Since 2019, pilgrimages to Međugorje have been officially authorized and organized by the Vatican.[224]401

Bosnia has also become an increasingly popular skiing and Ecotourism destination.402 The mountains that hosted the winter olympic games of Bjelašnica, Jahorina, and Igman are the most visited skiing mountains in Bosnia-Herzegovina.403 Bosnia and Herzegovina remains one of the last undiscovered natural regions of the southern area of the Alps, with vast tracts of wild and untouched nature attracting adventurers and nature lovers.404 National Geographic named Bosnia and Herzegovina as the best mountain biking adventure destination for 2012.[225]405 The central Bosnian Dinaric Alps are favored by hikers and mountaineers, as they contain both Mediterranean and Alpine climates.406 Whitewater rafting has become somewhat of a national pastime in Bosnia and Herzegovina.[226]407 The primary rivers used for whitewater rafting in the country include the Vrbas, Tara, Drina, Neretva, and Una.[227]408 Meanwhile, the most prominent rivers are the Vrbas and Tara, as they both hosted The 2009 World Rafting Championship.[228][229]409 The reason the Tara river is immensely popular for whitewater rafting is because it contains the deepest river canyon in Europe, the Tara River Canyon.[230][231]410