BiH Imports Exceed 20 Billion KM

(Patria) - Imports into Bosnia and Herzegovina amounted to 20.84 billion KM in the first eight months of this year, according to data from the Indirect Taxation Authority of BiH (UIO BiH) provided to "Nezavisne novine".

The data shows that in the first eight months of last year, imports were 20.22 billion KM. This means that imports have increased by about 620 million KM in one year.

On the other hand, products worth 11.5 billion KM were exported during the first eight months of this year.

In the first eight months of last year, our products worth 10.95 billion KM were placed abroad, which means that exports also increased by about 550 million KM.

Regarding countries, the most goods were exported to Croatia for about 2.05 billion KM, but the most products also came to BiH from this country, almost double, for 3.89 billion KM.

After Croatia, we exported the most products to Germany for 1.65 billion KM, and then to Serbia for 1.23 billion KM.

Regarding imports, after Croatia, we imported the most products from Serbia, for 2.8 billion KM, and then from Slovenia for 1.73 billion KM.

The data from UIO BiH states that, in terms of customs tariffs, the largest import in the first eight months of this year consisted of mineral fuels, mineral oils and products of their distillation, bituminous substances and mineral waxes, amounting to 2.46 billion KM.

This is followed by the import of nuclear reactors, boilers, machinery, appliances and mechanical devices and their parts for 1.83 billion KM, then vehicles, other than railway or tramway vehicles, their parts and accessories for 1.76 billion KM.

The largest export consisted of electrical machinery and equipment and their parts, sound recording or reproducing apparatus, television image and sound recording or reproducing apparatus, as well as parts and accessories for these products, for 1.05 billion KM.

Nuclear reactors, boilers, machinery, appliances and mechanical devices and their parts were exported for about 916 million KM, and furniture, mattress supports, bed equipment and similar products (mattresses, pillows and similar stuffed products) and others for about 770 million KM.

Igor Gavran, an economic analyst, stated that this ratio of exports to imports, in terms of value, is unsustainable and economically detrimental, as it depletes the economy and means a constant enormous outflow of money.

"However, a large part of imports relates to products that we do not produce ourselves (oil derivatives, natural gas, motor vehicles, electronics, various equipment, and even southern fruits) and for some of which we could develop domestic production in the future. For example, we have oil and gas reserves that we do not explore or use, we have an oil refinery that is not operating, we have the potential to develop the production of equipment and electronics, we produced motor vehicles before, so this production can also be developed," Gavran explains to "Nezavisne novine".

He points out that there are no concrete plans for such a thing, so it is highly questionable whether we will ever replace imports in this way, or at least in the foreseeable future.

"On the other hand, a very large part of imports relates to what we absolutely do not need because we produce it ourselves or can easily and quickly increase production (primarily agricultural and food products, furniture, construction materials, and the like), and we could relatively quickly reduce this to a minimum or completely eliminate it. Primarily, domestic consumers could make the biggest difference by buying domestic products and avoiding imported ones. However, our biggest opportunity to change the situation and reduce the deficit, and ideally to move into a surplus zone, is to increase exports. Our exports, both in volume and structure, are far below our potential, and in a large number of sectors, we have real grounds for investment and increasing production and exports. Inflation also plays a role, but also the fact that our export prices are generally very low, so even when we have significant exports of certain goods, we sell them cheaply, and we pay dearly for the same goods in imports," Gavran concluded.