Foreign direct investments for BH in 2023 amounted to KM 1.89 billion

The Central Bank of Bosnia and Herzegovina (CBBH) announced the results of a statistical survey according to which direct foreign investments in Bosnia and Herzegovina in 2023 amounted to KM 1.89 billion.

Direct investment flows in 2023. are 378 million more than in the previous year, 2022, when they amounted to KM 1.52 billion. The growth trend of reinvested earnings of existing companies with foreign investments continued in 2023. Also, an increase in investments in the form of equity shares was recorded, followed by a significant increase in investments in the form of other capital.

In terms of geographic origin, the largest inflow of investments during 2023 was recorded from Russia (KM 376.3 million), Serbia (KM 355.6 million), and from the Netherlands (KM 237.7 million).

Observed by activities, the most investments were realized in the field of production of coke and refined petroleum products in the amount of KM 362.4 million, then in the field of financial services in the amount of KM 304.3 million, and in the field of telecommunications KM 288.9 million.

The total balance of direct foreign investments in BH at the end of 2023 was KM 19.42 billion. This amount does not only represent the result of investments in the previous period, but through the retained earnings, also the result of the foreign-owned company's operations. As for the balance of direct investments at the end of 2023, the most refers to Croatia (KM 2.80 billion) or 14.4% of the total balance of investments, Serbia (KM 2.68 billion) or 13.8%, and Austria ( KM 2.67 billion) or 13.7%. Observed by activity, the highest level of foreign direct investment is in the field of financial services (KM 3.73 billion), followed by telecommunications (KM 2.02 billion) and wholesale trade (KM 1.84 billion).

The CBBH also regularly compiles statistics of foreign direct investments abroad, and as a result of the latest research conducted for 2023, data on flows by investment countries and by components of invested capital are available. The total flow of investments abroad amounted to 206.4 million convertible marks, which represents an increase of 133.3% or 117.93 million convertible marks compared to 2022. Investment in Slovenia during 2023 in the amount of KM 66.9 million is at first place in terms of the amount of investment, while investment in the Republic of Croatia with the amount of KM 38.2 million is at second place, followed by the Republic of Serbia, in which 28,8 million convertible marks were invested. Regarding the flows of  foreign direct investments by component, 104.5 million refers to equity capital, 47.0 million to retained earnings, and 54.8 million convertible marks refers to other capital.

Total investments from BH, at the end of 2023, amounted to 1,551.8 million convertible marks, which represents an increase of 14.5% compared to the end of  2022. The Republic of Croatia with the amount of 554.1 million convertible marks again in 2023 takes the first place with the total balance of investments from Bosnia and Herzegovina, followed by Montenegro and the Republic of Serbia, in which it was invested 264.8 million, i.e., 232.2 million convertible marks.

In accordance with the audit policy and on the basis of additional data collected in this year's research, together with the publication of data for 2023, data revisions for the previous two years were also carried out. Data on direct investments in BH and from BH are available on the website of the CBBH.