IMF projects 4% GDP growth for Bosnia and Herzegovina, Montenegro

The International Monetary Fund's latest forecast highlights ten European economies expected to outpace the continent’s average growth between 2027 and 2031. Bosnia and Herzegovina is projected to achieve an average real GDP growth of about 2.9% per year, driven by an export‑oriented manufacturing sector, remittances from the diaspora, rising domestic consumption and continued public investment in transport infrastructure. The IMF notes that without deeper structural reforms, the pace may be insufficient to narrow the gap with EU living standards, citing the country’s complex political system as a bottleneck.

Montenegro is expected to record a similar average growth of roughly 3% annually. The small Balkan state benefits from a strong rebound in tourism after the pandemic, complemented by infrastructure projects, real‑estate development and ongoing EU integration, which improves the business environment. However, the IMF warns that the economy’s heavy reliance on tourism makes it vulnerable to external shocks.