Bosnia and Herzegovina's Balance of Payments for 2018

(Patria) - The Central Bank of Bosnia and Herzegovina (CBBH) has published data on the balance of payments for 2018, according to which the current account deficit amounts to 1.37 billion KM, or 104.4 million KM less compared to 2017. In relative terms, in 2018, the current account deficit amounted to 4.2% of GDP, while it was 4.7% of GDP in 2017.

The main cause of the current account deficit in 2018 was a significant imbalance in foreign trade of goods. The trade deficit in goods in 2018 amounted to 7.53 billion KM, or 144.3 million KM more than in 2017, although record exports of goods were achieved in 2018. Exports of goods were 8.0% higher than in 2017, but at the same time, this was accompanied by an increase in imports of goods by 5.3% compared to the previous year.

A surplus of 2.46 billion KM was achieved on the services balance, which is 201 million KM more than in the previous year. Revenue from services was mainly the result of increased revenue from tourism, telecommunications and IT services, and construction works performed abroad, which positively impacted the current account deficit. In 2018, a primary income deficit of 168.9 million KM was recorded, which is 30.3 million KM more than the deficit reported in 2017.

A very significant item of the current account is secondary income. The secondary income balance in 2018 amounted to 3.87 billion KM, or 78 million more than in 2017. Within this item, cash inflows amounted to 4.26 billion KM, of which 2.7 billion KM relates to remittances from abroad. On the capital account in 2018, revenue from donations and aid amounted to 310.2 million KM, which is 8.3 million KM more than in 2017.

The financial account balance in 2018 amounted to 857.8 million KM, which is 14.1% less compared to 2017, by which BiH's liabilities to non-residents were also reduced. Within the financial account, direct investment liabilities (foreign investment in BiH) in 2018 amounted to 799.8 million KM, which is at the same level compared to 2017.