EBRD: Bosnia's GDP growth to decelerate by 0.3%

The revision of the GDP growth forecast is attributed to the expected impact of new US import tariffs, as well as rising political tensions in the country, which affect the prospects for urgently needed reforms and private investments, the EBRD says.

The European banking institution has also scaled down its growth projection for BiH in 2026 to 2.7%, which is also 0.3 percentage points lower than the previous estimate.

According to preliminary data, Bosnia and Herzegovina's economy grew by 2.5% in 2024, with the negative contribution to growth coming from net exports due to increased imports and a decrease in exports. This was driven by weaker external demand, which impacted the decline in industrial production.

In the Western Balkans region, which includes Bosnia and Herzegovina, Albania, Kosovo, Montenegro, North Macedonia, and Serbia, GDP growth is expected to slow to 3.2% in 2025, from 3.6% last year.