SARAJEVO, March 14 (FENA) – Considering that the current political crisis in our country has reached such proportions that even the European Parliament is discussing it, it is evident that the situation is significantly affecting the BiH economy, the Foreign Trade Chamber of BiH told FENA.
They remind that Bosnia and Herzegovina’s main trading partner is the European Union, with more than 70% of trade being conducted with EU countries. Governments and companies closely monitor developments in BiH, and business decisions will undoubtedly be made based on how the situation unfolds.
According to the Chamber, major buyers sourcing goods from BiH seek long-term security and stable suppliers. They fear that the crisis could disrupt supply chains, forcing them to look for alternative suppliers. Investors are also watching the developments with concern, and it is crucial that the crisis is resolved as soon as possible.
They emphasize that for years, the country’s image has been one of the main obstacles to economic growth and progress.
“A negative image of the country as politically unstable, lacking a unified market, legal security, and stability in fiscal and other economic policies is one of the key reasons for the absence of significant foreign investments. It also severely impacts the operations of BiH companies. Political stability has always been a prerequisite for the development of a stable economy,” the Chamber stated.
They believe that Bosnia and Herzegovina must be competitive in attracting foreign capital. To create a competitive and business-friendly environment, political stability and the rule of law are fundamental, along with education reform that will produce a sufficient number of skilled workers with wages that ensure a quality life. Additionally, well-structured labor laws and social protection are necessary to prevent the emigration of young people from BiH.
“Improving road infrastructure, making construction permits more accessible, securing favorable financing sources, and reducing tax burdens are all key factors in achieving competitiveness. Bosnia and Herzegovina is also expected to transition to renewable energy and implement green economy principles in business operations. However, all of this brings us back to the necessity of political stability, as it is essential for adopting laws aligned with EU directives. Only then will we be able to offer more, capitalize on ‘nearshoring’ opportunities, and increase the added value of our products,” the Chamber concluded.
