The Biggest Inflow of Direct Foreign Investment in 2007

According to the complete statistical figures from the Central Bank of Bosnia and Herzegovina (CBBH), 2007 has been noted as a year with the biggest inflow of direct foreign investment, in amount of KM 3, 02 billion, which is almost equal to the sum investment in the last three years.

Such a large inflow of investment is to a large degree the cause of the realization of big privatization agreements for the sale of telecom operators and oil industry in the Republic of Srpska (RS). When compared to other countries, last years' inflow in the amount of 14% Gross Domestic Product (GDP) is on the same level as successful transition countries.

The main investment during 2007 came from Serbia (45%), Austria (23%), Russia (11%), and Croatia and Slovenia with 5 % each.

After such a large inflow during the course of 2007, the total position of direct investments at the end of 2007 grew to KM 9, 01 billion, which is 49% more than in 2006.

Within the structure of all foreign investment to date, the banking sector further dominates with 38%, but now a significant amount has been allocated to the telecommunications (16%), trade (7%), the production of drinks and food (6%), and basic metals (5%).

Statistical data released by the CBBH was collected and treated according to international statistical standards, and the release of new figures includes revised figures for the past two years. These figures are available at the CBBH website www.cbbh.ba.

Public Relations Section