Bosnia and Herzegovina economic performance

Economic indicators for Bosnia and Herzegovina show growth in both tax revenues and corporate performance. The Indirect Taxation Authority reported that indirect tax revenues reached 10.705 billion KM during the first ten months of 2026, marking a 6.12 percent increase compared to the previous year. Data from 2025 indicates that company revenues in the Federation of Bosnia and Herzegovina (FBiH) rose to 79.3 billion KM, while profitable companies saw a nearly 13 percent increase in combined net profit.

However, the industrial sector faces challenges, including a 10 percent decline in manufacturing output and intense competition from Chinese firms. Concerns regarding energy costs have intensified as Elektroprivreda BiH (EPBiH) warned that electricity prices for businesses could increase by approximately 30 percent in 2027. This projected rise is attributed to high prices on European markets, an electricity shortage in Eastern Europe, and a reported deficit of approximately one million tons of coal impacting domestic production.

While approximately 2,600 business customers have already secured supply contracts at more favorable rates, other employers expressed concern that sharp increases could harm competitiveness and impact the final prices of goods and services. Regarding residential consumers, EPBiH has not ruled out a price increase after the New Year, though a final decision for households may not be known until mid-December following the adoption of the company’s 2027 business plan. Currently, household prices are not expected to change before the end of the year.