BUSINESS

The inflow​ of over 670 Million BAM of Foreign Direct Investments recorded in BiH

The inflow of foreign direct investment in Bosnia and Herzegovina in 2020 amounted to BAM 678.2 million, according to data from the Central Bank of Bosnia and Herzegovina (CBBH), which published the results of the statistical survey on foreign direct investment for 2020.

In terms of geographical distribution, the largest inflow of investments during 2020 was from Croatia (BAM 149.4 million), and then from Serbia (BAM 135.3 million).

Observed by activities, most investments were realized in the area of ​​financial services (banking sector) in the amount of BAM 157 million, then in the area of ​​wholesale, being BAM 93.9 million, and in the area of ​​electricity production, BAM 88.6 million.

Investment inflows can be characterized as relatively good given the deep global recession that has affected the ability of foreign investors, even a certain increase compared to 2019 when investments were lower by BAM 81 million. However, it should be noted that the majority of investments were reinvested earnings from existing companies with foreign investments, and they amounted to as much as BAM 586.3 million, while investments in the form of ownership shares were much lower.

At the end of 2020, the balance of foreign direct investment amounted to BAM 15.08 billion. This amount is the result of investments in previous years, as well as the operations of foreign-owned companies. The largest amount of direct investments still refers to Austria (BAM 2.78 billion), Croatia (BAM 2.42 billion) and Serbia (close to BAM 2.19 billion).

Given the activities, the highest balance of foreign direct investment is in the area of ​​financial services (BAM 3.67 billion), followed by telecommunications (BAM 1.74 billion) and wholesale trade (BAM 1.41 billion).

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