Bosnia’s foreign trade deficit contracted 8.2% y/y to BAM 6.8bn (EUR 3.5bn) in 2013 after increasing 1.3% the year before as manufacturing and utilities exports increased markedly, whereas imports declined over the period, the statistics office said in a statement.

The reading equals to 25.8% of the full-year GDP forecast, down from 28.8% a year ago, according to IntelliNews calculations. The 2013 export-to-import coverage ratio improved to 55.2% from 51.5% the year before.

Exports increased by 6.6% y/y to BAM 8.4bn in 2013 as key manufacturing sales abroad went up 3.1% to BAM 7.2bn over the period. The reading was underpinned by increasing sales of fabricated metal products, chemicals, leather, wood, machinery and equipment, wearing apparel and food products, which accounted for 41% of total exports. On the other hand, falling basic metal and coke and refined petroleum products exports (20% share in exports) dented Bosnia’s export potential.

Sales of electricity, gas, steam and air conditioning supply climbed 214.3% y/y to BAM 471.9mn in 2013, reflecting the favorable hydrological conditions in the beginning of the year.

Imports inched down 0.5% y/y to BAM 15.2bn last year on falling demand for energy and capital goods.

The main exports destinations for Bosnian producers in 2013 were Germany (15.6% share in total), Croatia (14.3%), Italy (12.0%) and Serbia (9.1%). The major import partners were Croatia (12.9% share in total imports), Germany (11.4%), Russia (9.9%) and Serbia (9.8%).