ANALYSIS BY THE CHAMBER OF COMMERCE OF BIH: Record exports from our country's metal and electrical sectors, reaching almost 7.5 billion KM

SARAJEVO, (Patria) - The metal and electrical sector of Bosnia and Herzegovina achieved record exports of almost 7.5 billion KM last year, which is 1.5 billion KM or 25 percent more compared to 2021, according to an analysis by the Foreign Trade Chamber of BiH.

"Export results in the period 2014-2022 provide a clear picture of movements and trends in the past period, and due attention should be paid to the fact that in the last two years, exports from this economic sector have increased by almost 100 percent, from four billion KM in 2020 to 7.5 billion KM in 2022," the analysis explains.

The largest export growth last year was recorded in the category of aluminum products, which increased from 941 million KM in 2021 to 1.5 billion KM, followed by iron and steel products, whose export value increased by 30 percent.

The Foreign Trade Chamber states that a decrease in exports was recorded in weapons and military equipment, excluding the TB36 explosives category, and when this category is included, defense production shows growth.

"This category recorded continuous growth until last year, primarily due to increased demand on the world market. However, the capacities of existing companies are full, and further investments and investment in expanding capacities and/or new production programs are necessary to achieve better export results," the analysis states.

The Foreign Trade Chamber also states that exports from the electrical industry last year exceeded 1.3 billion KM and are 20 percent higher compared to 2021, adding that the automotive industry, a sector that was extremely vulnerable three years ago due to market changes, also shows a positive growth trend.

The most important export markets for BiH's metal and electrical industry are Germany, accounting for 16.34 percent of total exports, followed by Austria with 15.46 percent, Italy with 12.33 percent, and Slovenia with 11.03 percent.

Last year, the metal and electrical sector achieved imports worth around 10.15 billion KM, which is 2.2 billion KM or 28 percent more compared to 2021, with the aluminum category recording the largest growth.

According to the Chamber, this is linked to the increased needs of domestic processors of that metal, and the fact that in the last three years, with the shutdown of the electrolysis plant in BiH's only aluminum production complex, processors have been forced to import raw materials.

"If the electrolysis and aluminum production plant in BiH were to be restarted, this item would certainly be significantly reduced. If solutions were found for supplying electricity at favorable prices to restart the electrolysis plant, the statistics for the exchange of this category, sector, and the entire economy of BiH would be record-breakingly successful," the analysis states.

The Chamber states that categories such as cars, machinery, and electrical appliances, as in previous years, account for high import values, which is characteristic of smaller countries without their own production of highly demanding products such as cars, computers, and similar goods.

"If this item were excluded from the analysis of foreign trade exchange, BiH would achieve a deserved surplus in this sector," the analysis explains.

The most important import markets for the metal and electrical industry are Serbia with a share of 10 percent, Slovenia, Germany, and Switzerland with nine percent each, Croatia and Italy with eight percent each, Austria with seven percent, and Turkey with six percent.