EU countries dominate foreign direct investments in Bosnia and Herzegovina

In 2024, Bosnia and Herzegovina experienced significant foreign direct investment (FDI) inflows, totaling 1.76 billion KM, according to the Central Bank of Bosnia and Herzegovina. This amount marked a reduction of 301.2 million KM compared to the previous year's total of 2.06 billion KM. The majority of FDI during this period originated from European Union countries, with Croatia leading at an investment of 391.1 million KM, followed by Germany at 255.3 million KM and Slovenia at 247.1 million KM. This substantial investment influx showcases the ongoing interest and economic ties between Bosnia and Herzegovina and its EU neighbors. When analyzing the distribution of these investments by sector, it is evident that financial services emerged as the most attractive category, securing a total of 503.8 million KM. Retail trade followed, accounting for 219.8 million KM, while wholesale trade also contributed significantly with 205.1 million KM. The concentration of investments in these sectors highlights the potential for growth and development in Bosnia and Herzegovina's economy, particularly in areas that foster consumer and business services. At the end of 2024, the cumulative amount of foreign direct investments in Bosnia and Herzegovina reached 21.22 billion KM. This total not only includes the investments made in 2024 but also reflects the results of previous years along with the operational outcomes of companies under foreign ownership. Croatia retained its position as the largest single investor in Bosnia and Herzegovina, with a notable contribution of 3.22 billion KM, which accounts for approximately 15.2 percent of the total investment inflows. Overall, foreign direct investments play a crucial role in the economic landscape of Bosnia and Herzegovina, providing essential funding for various sectors. The ongoing investments indicate a positive trajectory for economic growth and foreign interest in the region, especially as the total foreign direct investment continues to grow, showcasing the potential of Bosnia and Herzegovina as a competitive player in the Southeastern European market.