FTC BiH – Volume of foreign trade of BiH decreased by 17 percent

FTC BiH – Volume of foreign trade of BiH decreased by 17 percent

SARAJEVO, August 9 (FENA) – Total volume of foreign trade of Bosnia and Herzegovina in the first half of this year amounted to 13.289.605.000 KM and is lower by 16.96 percent or 2.71 billion KM compared to the same period last year.

Exports from BiH in that period were lower by 15.27 percent or 918 million KM, and imports to BiH by 17.98 percent or 1.79 billion KM.

Total foreign trade balance decreased by 22 percent and amounts to -3,096,108,000 KM. The export-import ratio increased by 3.3 percent to 62.2 percent.

According to the analysis of the Sector for Macroeconomic System of the Foreign Trade Chamber of BiH (FTC BiH), indicators of trade with the world reflect the unfavorable picture caused by coronavirus pandemic, primarily by declining exports to major trading partners: Germany -8.5 percent (-73 million KM ); Croatia -5.5 percent (-41 million KM); Serbia -17 percent (-113 million KM); Austria -11.1 percent (-61 million KM); Italy -34.6 percent (-245 million KM), and by reducing exports to all other markets except the Swiss market.

The decrease in imports to BiH was caused due to stagnation of trade in this period, i.e. the decrease in total domestic demand and consumption, and the decrease in prices of oil and oil derivatives.

We still have a surplus with Germany and Austria, and the largest volume of trade was with Croatia, Serbia, Germany, Slovenia, Italy, etc.

“However, the future is uncertain, and BiH, as an export-oriented and import-dependent country, does not have a system to protect it from external influences. Thus, it is difficult to predict the recovery of BiH market without analyzing events on the global economic scene. If the second wave of the pandemic does not happen, those borders would remain open and BiH could expect a slight recovery next year,” FTC BiH stated.

They note that the stability and growth of the economy depend largely on the main trading partners, primarily the EU and then CEFTA countries.