The exports of Bosnia and Herzegovina’s (BiH) defense industry last year amounted to 561.5 million BAM, increasing by 37.6 percent compared to the previous year, while imports rose by 76.7 percent, reaching 146.2 million BAM.
The export-to-import coverage ratio fell from 493.22 percent in 2023 to 384.04 percent, meaning that BiH is relying more on imports, although it remains a significant net exporter, according to an analysis by the Foreign Trade Chamber of BiH.
The main export products from BiH are ammunition and explosives, accounting for more than 65 percent of total exports, military weapons and parts at around seven percent, and gunpowder and detonating fuses at more than 27 percent.
According to this analysis, the United States (U.S.) remains the main buyer of military equipment from BiH, with exports amounting to 136.4 million BAM, an increase of 30.53 percent. The European Union (EU) countries – Czech Republic, Slovakia, Bulgaria, Germany, and Poland – are also increasingly purchasing these products from BiH.
“The Middle East remains important, particularly Saudi Arabia, Iraq, and Egypt, but some Arab countries, such as the United Arab Emirates (UAE), have dropped off the list of top buyers,” the Chamber stated, adding that the Asian market is growing, with India, Indonesia, Bangladesh, and the Philippines emerging as new export markets.
Regarding imports, Serbia is the most dominant, accounting for 41.59 percent of total imports, followed by Croatia with 18.54 percent, indicating regional ties in the defense industry.
The Foreign Trade Chamber added that the rise in imports of raw materials and components shows that BiH is expanding its capacities and striving to meet increased orders.
“The growing business success of BiH‘s defense industry has undoubtedly been driven by increased demand in the global market. This sector, excluding the decline caused by the pandemic in 2020, has seen consistent growth,” the analysis stated.
The Chamber noted that the capacities of existing companies are fully utilized and that further investments are necessary for capacity expansion and new production programs to improve export results.
“This is evidenced by the slower export growth and statements from most companies that their production capacities are already filled for the current year,” the analysis highlighted.
The Defense Industry Group of the Foreign Trade Chamber brings together 15 active members from across BiH, who align their interests and contribute to these export results.
Photo: RTRS
