The inflow of foreign direct investment (FDI) in Bosnia & Herzegovina last year amounted to BAM971mn (2.6% of GDP), 35% more compared to 2020 according to the Central Bank of Bosnia and Herzegovina (CBBH), which published the results of statistical research on foreign direct investment for 2021.
The FDI to GDP ratio may not be impressive by absolute standards, but the current account (CA) deficit is moderate as well: BAM802mn in 2021, actually smaller than the foreign direct investments.
Regarding the geographic distribution of the investors, the highest inflows during 2021 came from Switzerland (BAM211mn, out of which BAM207mn was reinvested earnings), Turkey (BAM147mn, out of which BAM71mn was reinvested earnings) and the UK (BAM126mn, out of which BAM84mn was reinvested earnings).
By industry, most investments were directed in retail trade (BAM173mn), followed by the production of finished metal products (BAM114mn) and base metal production (BAM103mn).
Reinvested earnings had a lower share (54%) in the total flows compared to previous years, as a significant increase of investment in the form of ownership shares was recorded, while other capital decreased at the same time.
At the end of 2021, the stock of foreign direct investments to Bosnia amounted to BAM16.28bm.
The highest amount of direct investments come from Austria (BAM2.88bn or 17.7% of the total), Croatia (BAM2.72bm or 16.7%) and Serbia (BAM2.25bm or 13.8%).
By activities, the highest amount of foreign direct investments were recorded in financial services (BAM3.67bn ), followed by telecommunications (BAM1.75bn) and wholesale trade (BAM1.44bm).