Foreign Direct Investment In BH

According to the Central Bank of Bosnia and Herzegovina (CBBH) data, the inflow of foreign direct investments (FDI) in 2011, amounted to KM 566.9 million, or 2.2% of GDP, which is more than in 2010, with the recorded inflow of KM 430.9 million. The gradual increase in inflows in the last two years is encouraging, but they are still significantly lower than in the period before the global crisis, and it is obvious that the recession effects on direct foreign investments have not yet been annulled and also, that BH has not been able to attract investments in the volume they amounted to before the recession.

In the structure of foreign direct investment, KM 389.3 million is the equity, KM 185.1 million is the other capital, while the amount of retained earnings was negative (KM -8 million).

In terms of geographical distribution of investment inflows a significant change was recorded compared to the previous year, because the most investments were from Russia (KM 142.6 million), Austria (KM 106.2 million) and Serbia (KM 98.3 million). At the same time, the decline of investments was recorded in 2011 from some countries, which used to be the major investors in the previous years.

The most investments are engaged in the activities related to financial intermediation, in a total amount of  KM 162 million, then in the sphere of trade (wholesale and commission trade) in the amount of KM 96.4 million, and the real property business companies, amounting to KM 74.3 million. Investments in financial intermediation are largely related to the banking sector, which in 2011 again, recorded a high profit, indirectly influencing the level of retained earnings.

Total balance of direct investments for 2011, amounted to KM 10.6 billion and the largest share still refers to Austria (KM 2.34 billion) and Serbia (KM 1.83 billion).

According to the statistical principles, the audits were performed over the amounts of flows and balances of foreign direct investments for the years preceding 2011.

                                                       

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