The current account of the balance of payments for Bosnia and Herzegovina in the first quarter of 2020 recorded a deficit of KM 395.5 million, which is KM 67.4 million or 14.6% less compared to the same period last year, as the data of the Central Bank of Bosnia and Herzegovina (CBBH) on the balance of payments for the first quarter of this year illustrate.
The reduction of the current account deficit in the first quarter on annual basis was mostly influenced by the reduction of the trade deficit in the amount of KM 200.6 million or 10.7%, which is a consequence of a significant reduction of imports of goods by 5.8%, while exports of goods was reduced by only 2%. At the same time, a positive balance of international trade in services of KM 376.7 million was realized, but it decreased by 23%.
These trends of the balance of services are entirely the result of reduced exports of services (primarily category: travel – tourism), while imports of services in the observed quarter remained at the level it was in the same period last year.
There are no significant changes in the item of primary income compared to the same quarter of the previous year. The decline in the secondary income balance of 2% is somewhat more noticeable, and one of the reasons is the decline in the inflow of personal transfers (remittances). They decreased by KM 22.6 million or 3.4%, which is relatively moderate, because the full effects of the pandemic have not been felt in the first quarter.