Moody's confirmed the credit rating of Bosnia and Herzegovina 8/5/2024 Tweet Moody's Rating confirmed the credit rating for Bosnia and Herzegovina, B3 with a stable outlook. The confirmation of the credit rating reflects the opinion of Moody's analysts that very high political instability of BH continues to hinder the implementation of reforms and reflects institutional weakness. Moody's expects real GDP growth to recover to 3% in 2025. The reform momentum could help unlock access to new pre-accession financing that can support larger investments. On the other hand, the economy faces significant negative risks from the upcoming implementation of the European Union Carbon Border Adjustment Mechanism (EU CBAM), which will negatively affect a large part of BH's exports in the absence of significant decarbonization reforms, according to Moody's report. The stable outlook reflects, among other things, the analyst's view that the general government debt will remain moderate even in the event of increased social spending. According to Moody's, the credit rating can be increased if there is an implementation of reforms that would strengthen the governance of the country and solve long-standing structural challenges, and lead to visible progress on the way to the European Union. Close cooperation with the International Monetary Fund and the European Union would contribute to this.
