Overview Bosnia and Herzegovina

Show region East-Central and Southeast Europe

The continuing negative trajectory of Bosnia and Herzegovina (BiH) is based on the continuous denial by the ruling political elites in Republika Srpska of the country’s constitutional order and statehood. Over the past few years, the ruling Croat party has mirrored those sentiments through challenges to state functionality, the use of veto powers and a denial of legitimacy to legally elected government bodies.

The economic impact of the COVID-19 pandemic was substantial, as GDP dropped by 5.5% in 2020, fiscal revenues decreased for the first time since 2009, and unemployment increased. However, international borrowing secured fiscal stability, despite the stark negative economic trends.

Almost no progress has been made on key structural reforms regarding the rule of law and constitutional reform necessary for accession negotiations with the EU. Improving the fragmented and partly corrupt health care system remains a key priority.

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