Analysis: Inflow of Direct Foreign Investments in BiH

The inflow of direct foreign investments in Bosnia and Herzegovina in 2022 amounted to 1.44 billion BAM, which is the highest amount recorded so far, according to data from the Central Bank of Bosnia and Herzegovina (CBBH), which published the results of a statistical survey on direct foreign investments for 2022.

Those record flows of direct investments in 2022 are 310 million BAM, i.e. 21 percent higher than in the previous year, when they amounted to 1.13 billion BAM.

Most of this growth in foreign direct investments is a consequence of high reinvested earnings of existing non-financial and financial companies with foreign investments, while investments in the form of equity capital and other capital (intercompany lending) amounted to a total of 500 million BAM.

In terms of geographical distribution, the largest inflow of investments in 2022 was from Great Britain (271.8 million BAM), followed by Austria (175.8 million BAM), the Netherlands (166.6 million BAM), Germany (159.5 million BAM) and Serbia (134.4 million BAM).

Observed by activities, the most investments were realized in the area of production and supply of electricity in the amount of 199.9 million BAM, then in the area of financial services in the amount of 146.8 million BAM, and in the area of production of base metals 122.9 million BAM .

At the end of 2022, the state of direct foreign investments amounted to 17.45 billion BAM, and this amount represents the result of investments and business results of foreign-owned companies in previous years. The largest amount of direct investments still refers to Austria (2.69 billion BAM or 15.4 percent of the total investment balance), Croatia (2.54 billion BAM or 14.6 percent) and Serbia (2.43 billion BAM or 13 .9 percent).

Observed by activities, the highest state of direct foreign investments was registered in the field of financial services (3.42 billion BAM) and related to investment in the banking system, then in the fields of telecommunications (1.75 billion BAM) and wholesale trade (1.68 billion BAM), which means that these three areas account for almost 40 percent of the state of investments.

In accordance with the audit policy and on the basis of additional data collected in this year’s research, together with the publication of data for 2022, data revisions were also carried out for the previous two years, the CBBH announced.

Share This Article
Leave a Comment

Leave a Reply Cancel reply

Exit mobile version