The inflow of foreign direct investments in BH in 2020 amounted to KM 678.2 million

The inflow of foreign direct investment in Bosnia and Herzegovina in 2020 amounted to KM 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 is from Croatia (KM 149.4 million), and then from Serbia (KM 135.3 million).

Observed by activities, most investments were realized in the area of ​​financial services (banking sector) in the amount of KM 157 million, then in the area of ​​wholesale, being KM 93.9 million, and in the area of ​​electricity production, KM 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 KM 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 KM 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 KM 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 (KM 2.78 billion), Croatia (KM 2.42 billion) and Serbia (close to KM 2.19 billion).

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

In accordance with the audit policy and on the basis of additional data collected in this year's survey, together with the publication of data for 2020, data audits were performed for the previous two years as well.