Bosnia’s 9-mo current account gap narrows 42% y/y to EUR 574mn

By bne IntelliNews January 7, 2014

Bosnia’s current account deficit shrank 42.2% y/y to BAM 1,123mn (EUR 574mn) in January-September 2013, thanks to falling foreign trade gap and higher investment income from abroad, central bank data showed. The nine-month current account gap equalled to 4.3% of the full-year GDP forecast, down from 7.6% a year earlier, according to IntelliNews calculations.

The January-September foreign trade deficit improved to 21.4% of GDP (BAM 5.6bn) from 24.7% of GDP (BAM 6.3bn) a year ago as exports increased while imports declined over the period. Sales abroad rose markedly by 9.0% y/y to BAM 4.1bn in January-September, reflecting improved economic activity and low prior-year base. Imports, on the other hand, contracted by 3.6% y/y to BAM 9.7bn. 

Higher primary income account surplus which was underpinned by rising investment revenue (up 14.6% y/y to BAM 90mn) also contributed to the January-September gap narrowing. The surplus of the service account, likewise, increased by 4.3% on the year at BAM 1.7bn as higher income from tourism offset falling processing services revenue.

The surplus of the financial account shrank 46.3% y/y to BAM 761mn in January-September, despite strong increase of net FDI. The latter climbed 37% to BAM 518mn over the period. They covered over 46% of the current account deficit, up from just 19% the year before.

Bosnia's 2012 current account gap narrowed 1.7% to BAM 2.5bn after widening by close to 66% in 2011, mainly due to higher service (transport, travel and construction) revenue which offset slower increase of the foreign trade gap.

Bosnia's balance of payments (BAM mn) Jan-Sep'12 Jan-Sep'13  y/y, %
Current account -1,942.3 -1,123.2 -42.2
Foreign trade balance (goods) -6,332.5 -5,629.5 -11.1
Services 1,621.5 1,691.7 4.3
Primary income 130.0 223.5 71.9
Secondary income* 2,638.7 2,591.2 -1.8
Capital account 219.0 220.9 0.9
Financial account** -1,416.3 -761.0 -46.3
Net FDI -378.1 -518.4 37.1
Portfolio investments 19.6 93.1 376.4
Other investments -906.8 -855.2 -5.7
Net errors and ommissions 306.9 141.3 -54.0
Source: CBBH; *includes current transfers between residents and non-residents ; **calculated as assets abroad (outflow) minus liabilities (inflow)      

Related Articles

Shell again eyes oil, gas exploration in Bosnia

Royal Dutch Shell is again interested in oil and gas exploration in Bosnia & Herzegovina ... more

Bosnia indicts former interior minister, 37 others for organised crime

The prosecution of Bosnia & Herzegovina’s Sarajevo canton formally indicted former interior minister Alija Delimustafic and 37 other individuals, as well as eight legal entities in a large ... more

Bosnia officially joins Transport Community, unlocking €250mn in EU funding

Bosnia & Herzegovina has formally joined the Transport Community, unlocking more than €250mn EU funding for projects in the country. The European Union and five Western Balkan partners ... more

Dismiss