BUSINESS

Central Bank of Bosnia and Herzegovina published the Data on Balance of Payments

 

The Central Bank of Bosnia and Herzegovina (CBBH) published the data on balance of payments for 2018, according to which the current account deficit amounted to 1.37 billion BAM, which is about 104.4 million BAM less compared to 2017. In relative terms, the current account deficit amounts to 4.2 % of GDP, while in 2017 amounted to 4.7 % of GDP.

In 2018, too, the main cause of the current account deficit is a significant imbalance in foreign trade of goods. The deficit of trade in goods in 2018, amounted to 7.53 billion BAM and it is less by 144.3 million BAM compared to 2017, although a record exports of goods was achieved in 2018. The export of goods was 8,0 % higher than in 2017, but at the same time it was accompanied by an increase of goods import by 5.3 % compared to the previous year. The balance of services recorded a surplus of 2.46 billion BAM, which is by 201 million BAM higher than in the previous year. The revenues from services were mainly resulting from the increase in revenues from tourism, telecommunications and IT services, and construction work which had a positive impact on the current account deficit.

In 2018, there was a deficit in the primary income amounting to 168.9 million BAM, which is by 30.3 million BAM higher than the deficit recorded in 2017.

Very important item of the current account is the secondary income. In 2018, the secondary income balance amounted to  3.87 billion BAM, or by 78 million BAM more than in 2017. Within this item, current transfer inflows amounted to KM 4.26 billion BAM, out of which 2.7 billion BAM refers to personal transfers or workers remittances from abroad.

In 2018, revenues on the capital account were generated from grants and aid in amount of 310.2 million BAM, which is by 8.3 million BAM more than in 2017.

The balance of the financial account in 2018 amounted to 857.8 million BAM, which is by 14.1 % less compared to 2017, illustrating how much the liabilities of Bosnia and Herzegovina to non-residents have been reduced. Within the financial account, direct investments liabilities in Bosnia and Herzegovina in 2018 amounted to 799.8 million BAM, being at the same level as compared to 2017.

 

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