Bosnia Herzegovina
Melissa Jakupovic
Rankings
World Ranking: 97
Quick Facts
- Population:
- 3.9 million
- GDP (PPP):
- $32.1 billion
- 1.2% growth
- -0.2% 5-year compound annual growth
- $8,280 per capita
- Unemployment:
- 28.6%
- Inflation (CPI):
- -0.1%
- FDI Inflow:
- $331.7 million
Rule of Law (1. Legal System) Property Rights & Freedom From Corruption
2. Competitive Markets:
3. Limits on Government Regulation:
4. An Efficient Capital Market:
5. Monetary Stability:
6. Low Tax Rates:
Tax policies in Bosnia vary depending on the body of government. The highest individual and corporate income tax rates are ten percent. Other taxes may also come into play such as added value tax and/or property tax. The overall tax accounted for about 38.8 percent of GDP in the most recent year. Public spending amounted to 49.2 percent of domestic output. Public debt takes up to 43 percent of the domestic economy. Taxes are not at extreme high, but policy could be altered to free up economic intent and motive.
7. Free Trade:
Bosnia and Herzegovina had a low average tariff of 1.4 percent. Other barriers that do not involve tariffs have been slightly minimized, and customs procedures have improved. Foreign investors, however, face difficulty with bureaucracy. Nearly 80 percent of banking capital is privately owned, and about 90 percent of banks are foreign-owned. The inconsistent law enforcement and varying policies limit the availability of credit for start-up businesses. Thus, the Bosnian economy is at a stand still.