The diaspora has a key role in the economy of Bosnia and Herzegovina (BiH). There is a constant increase in money remittances. In the past year, they reached a record 4.16 billion BAM. Thanks to this money, the domestic population manages to maintain purchasing power and final consumption.
Far from their hometown abroad, an estimated 2.2 million people of BiH origin live. The reasons for leaving are numerous. Some leave for economic reasons, some in search of change. Jelena Koljancic from Banja Luka, who has been living in Germany for two and a half years, shared her thoughts in an interview. Among other things, she says…
“I wouldn’t agree that the cost of living here is higher. That’s not true. I wouldn’t say that’s the case. One can live quite decently. One can save. One can go on vacation. All that with one’s salary. I work alone. And I live quite decently from my salary,” says Jelena Koljancic.
Life in BiH on a single salary is not simple. Help is needed. Our diaspora sends more and more money each year. Remittances are higher by 370 million BAM. This is shown by data from the Central Bank of BiH (CBBiH).
“Total current transfers from abroad in 2024 amounted to 5.69 billion BAM and are higher by 425 million BAM compared to 2023. A growth trend has also been achieved in money remittances from abroad. On that basis, the inflow last year was higher by 370 million BAM compared to the previous year,” they say from the CBBiH.
That money makes up about 11 percent of our GDP. However, in addition to the money sent via banks, it is necessary to add the money the diaspora brings when coming home. The amount can only be estimated.
“First and foremost, the number of people leaving is increasing. Second, the situation here is increasingly difficult while remittances are higher and money is being sent to relatives and friends, the situation is much more difficult here and we no longer have enough labor and that critical mass of labor for our economy to become efficient and competitive,” says Aleksandar Ljuboja, economic expert.
How big a role the diaspora plays is also explained by the fact that it sends twice as much money annually as was recorded in direct foreign investments in BiH in 2023. Does generosity toward the homeland preserve social peace in BiH?
