The foreign trade deficit in Bosnia and Herzegovina does not favor the domestic economy. In half a year, it exceeded 6 billion marks. Compared to last year, exports are 8 percent lower. The decline in exports was recorded in the sale of electricity, steel, and in the export of textiles and other economic activities. Poor exports are caused by increased imports of goods and services. And again the question, why do we import what we produce, primarily water.
729 million marks less exports compared to the same period last year, a figure that should worry the authorities. We continue to import more than we export, 3% more compared to last year. More and more often we can see foreign and less domestic products on our market, which is a reflection of the trade imbalance in which our country is.
“We know that our country is one of the major importers of food products, which is the result of an unstructured industry and lack of investment in agricultural production, i.e. a lack of what is called economic nationalism in political economy,” explained Adem Olovčić, professor of international economics at the International Burch University.
In the first half of the current year, our country exported the most insulated wires, while the export of electricity decreased drastically and compared to the same period of the previous year, it was lower by 382 thousand marks. On the other hand, the import of oil derivatives is still leading with the increase in the import of cars.
“The most represented imported products in BiH are those products that are not produced in BiH or are not produced in sufficient quantities, and products, that is, the so-called intermediate products that are used in the stages of processing and production and are then further exported as final and finished products,” he says. Slaviša Ćeranić, Director of the Sector for the Macroeconomic System of VTKBiH.
“We are still a growing economy, an economy in transition, and it is quite expected that we will not only have a foreign trade deficit for the next couple of years, but also for the next couple of decades,” points out Admir Čavalić, president of the Committee for Economic and Financial Policy of the Federal Council of FBiH.
According to all estimates, the foreign trade imbalance will certainly continue to be a problem in the coming years. However, with a more intensive integration of the BiH market on the world and regional scene, we can expect progress in the future, Federalna writes.
