Bosnia’s trade gap shrank 15.6% y/y to BAM 354.5mn (EUR 181.3mn) in January 2014, the statistics office said in a statement. The monthly export-import coverage ratio improved to 64.7% in January from 59.2% a year ago.

January sales abroad grew 6.3% y/y to BAM 648.8mn, as key manufacturing exports climbed 7.2% y/y to BAM 576.7mn (89% share in total). Sales of electricity, gas, steam and air conditioning supply abroad, on the other hand, declined 1.5% y/y to BAM 26.2mn, reflecting high prior year base.

Imports shrank 2.6% y/y to BAM 1.0bn in January dragged down by falling domestic demand for food, coke and refined petroleum products, basic metals and machinery and equipment.

Exports to the European Union, which remains Bosnia’s main trade partner, went up 4.2% y/y to BAM 489.8mn (75% share in total exports), while imports from the union (61% share in total) edged down 0.6% to BAM 607.8mn over the period.

Bosnia’s foreign trade deficit contracted 8.2% y/y to BAM 6.8bn in 2013 after increasing 1.3% the year before thanks to higher manufacturing and utilities exports.

Net exports have been the main driver of Bosnia’s economic recovery last year. The country's GDP expanded by a mild 0.8% in 2013 following a 1.1% contraction in 2012. In 2014, the IMF expects the economy to grow by 2.0% while it will stay below its pre-crisis level (of around 6% in 2006-2008) in the mid-term.