WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

In Bosnia and Herzegovina, exports expanded substantially in 2010 and the first months of 2011, but this did not trigger much GDP growth, as the export sector‘s GDP contribution is rather small. Large parts of the business sector are still in worse shape than they were before the crisis; the public sector finds it difficult to make ends meet. The flow of funds from Paris Club creditors will remain interrupted pending the establishment of a new central government after the elections held in October 2010. Households continue to rely heavily on remittances. Prospects of EU accession are poor.