Bosnia’s foreign trade gap shrank 12.4% y/y to BAM 3bn (EUR 1.6bn) in January-June 2013 on the back of rising energy and manufacturing exports and falling imports, the statistics office said. The H1 trade deficit accounted for 11% of the full-year GDP, improving from 13% of GDP a year earlier. The export-import coverage ratio strengthened to 58% in H1 from 53% a year earlier.

Exports increased 8.7% y/y to BAM 4.2bn in January-June whereas imports fell 1.3% y/y to BAM 7.2bn.

The imports retreat was mainly driven by falling utilities and capital goods purchases. On the other hand, imports of non-durable consumer goods increased 6.2% y/y to BAM 1.9bn in January-June (24% share in total imports) despite declining disposable income of households. The reading could imply a mild recovery of consumption which is likely supported by rising private remittances and higher foreign tourist numbers during the summer season.

Higher manufacturing and utilities sales were the main drivers of Bosnia’s H1 export growth. Key manufacturing exports rose 4.7% y/y to BAM 3.6bn (86% share in total) lifted by increasing sales of furniture, food, leather, wood, machinery and equipment and motor vehicles, trailers and semi-trailers.

January-June sales of electricity, gas, steam and air conditioning supply jumped 195% y/y to BAM 292mn, partly reflecting a low-prior year base.

The main exports destinations for domestic Bosnian producers in H1 were Croatia (15.5% share in total), Germany (15.5%), Italy (11.6%) and Slovenia (8.1%). The major imports partners were Croatia (13.2% share in total imports), Germany (11.3%), Italy (9.9%) and Russia (9.8%).