Strong domestic demand-led recovery underway

B2

MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in October 2021.

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GDP
USD52.96bn (World ranking 84, World Bank 2020)
Population
6.9mn (World ranking 106, World Bank 2020)
Form of state Parliamentary Republic
Head of government Ana BRNABIC (Prime Minister)
Next elections 2022, presidential
  • Strong growth potential
  • Comfortable level of foreign exchange reserves
  • Track record of currency stability
  • Low labor cost plus generous state subsidies for foreign companies
  • Continued substantial FDI inflows
  • Unresolved Kosovo conflict
  • Elevated public debt
  • High external debt burden, including external arrears
  • Deficient infrastructure (roads, railways)
  • Elevated level of perceived corruption and bureaucracy

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
Germany 12.9%
1
13.6% Germany
Italy 8.4%
2
12.5% China
Bosnia and Herzegovina 7.1%
3
8.4% Italy
Romania 6.5%
4
6.0% Russia
Hungary 4.7
5
5.0 Hungary

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 12.4%
1
7.0% Electrical machinery, apparatus and appliances, n.e.s.
Cereals and cereal preparations 5.1%
2
4.8% Medicinal and pharmaceutical products
Vegetables and fruits 5.1%
3
4.8% Other industrial machinery and parts
Power generating machinery and equipment 4.8%
4
4.7% Road vehicles
Rubber manufactures, n.e.s. 4.4%
5
4.5% Petroleum, petroleum products and related materials
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