Bosnia and Herzegovina is, statistically, among the least in charge of countries in our region, and in Europe and when you listen to representatives of the government, they are dying.
In their “pink world” it is so, but what is really a condition, what happens when you take off pink glasses?
Experts say that the economies in the region, in our neighborhood, are not rich, developed and successful and that comparison with them is not something Bosnia and Herzegovina should strive for. According to statistics, in the world, long already the largest public debt has Japan, and that is one of the most developed and annual world economies.
The amount of debt is important for how important is the structure of that debt, and Bosnia and Herzegovina has long been in charge of “pitching” the budget.
BiH public debt 13,738 billion KM
The public debt of Bosnia and Herzegovina is 13.738 billion KM, which is approximately 28 percent of GDP, as much as 2024. years and as statistics say in the best position in the region.
Although official data on public debt for 2025 are not yet published, in other countries, comparisons say BiH is five times less in charge of Serbia (76 billion KM or 57.6 percent of GDP), Albania and North Macedonia 55-56 percent of GDP. We are also far in front of Montenegro, which, although at the end of March, this year had a public long than eight billion KM, it is as much as 56.9 percent of GDP.
Statistics and reality
Igor Gavran, an economic analyst, points out for the factor that it is statistically true that BiH is least indebted in the region, but that it is important to emphasize several facts.
– Economies in our region are not rich, developed and successful and comparison with them is not something we need to strive for because it is almost as a comparison of the two entities in BiH, none of which is not successful. Also, when we look at statistics, the world’s largest public debt has been in the world for a long time, which is one of the most developed and most delivered world economies. Those public debt is no obstacle, because its structure is favorable and the most part are the entrusters of domestic entities. If you would believe our authorities that praise the debt height, then we should believe that BiH is more successful than Japan – explains the raven.
He claims that the amount of debt itself is much less important than its structure and sustainability.
– For example, take two individuals from which one for the same loan amount to build a factory, employs the workers, creates new value and generates revenue, and the second amount spends on the betting or maybe buy a yacht. We see that the same amount of debt consumed in the right way can be a positive sign because “fertilized” we are the money and ensure that we do not need to return it in the coming period, as we create new value. Or in another case, that means we go to bankrupt, after we “run” everything and we can’t even return it without a new loan, let alone create anything. E Unfortunately, I would be a bad example where we get in charge, in unfavorable conditions, in large part in BiH, so we depend on foreign creditors and that money simply disappears in budgetary spending and corruption.
It adds that every brand of debt in BiH is more difficult than millions and billion debt of some regulated economy where it is managed in the right way, and the funds are used for the most careful and most useful purposes.
– Whoever returns one loan with another loan, without creating a new value and reducing borrowing needs – an individual, company or state, sinking deeper and goes to bankruptcy – concludes Gavran.
Bad condition
Zoran Pavlović, an economic analyst, for Factor It points out that the amount of indebtedness of a country is not a sufficient parameter for the assessment of the situation in its economy.
– The question is how much and to what extent are the budgets of one state developmental, and how many of the Potoški? According to what we can see, there are no funds for the development of economic societies in that whole story, everything is directed to consumption in the public sector, and nothing for economic incentives or economic development.
The essence of all this is that, if we entered deeper in the analysis, not only what is the gross domestic product, but the number of pensioners, therefore, in a very bad position and bad condition, and our governments do nothing – Pavlović.
He says the biggest problem is that we are practically facing imports, not the development of domestic production and that little funds that should separate for economic development, does not exist.
He claims that the BiH authorities do not lead the invoice on the ambience in which BiH is located.
– The big problem is in Europe, then the customs that introduces America, a drop in order, there are many situations where ministries of economic and government must be engaged in order to preserve production – explains Pavlović.
He also states the example of the company from Mrkonjić, where the director asked for help from the municipality, because that factory that was producing the raw materials for the construction of high furnaces and that the growth of electricity had led to the factory and fired 100 people.
– It’s the last company she worked in Mrkonjic Grad – He points out Pavlovic, and adds that power did not do anything to help them.
Politics and economy
He emphasizes that we live in the ambience that is very complex, and the representatives of the authorities are dealing with politics because, as he states, obviously do not know anything about the economy, nor do they interest them.
He says that I would not be at the level of the danger of being in front of BXROT because the situation is such that there is a relatively high savings in BiH, that is, citizens’ deposits.
– What is a danger and may not be that creditors begin to suspend the financing of the projects and that is why the entities will allocate 25 fuels each month to ensure that the loans will return – explains Pavlović.
He states another example when it comes to a plan for the growth that would not meet, and points out that therefore loses ten percent of the EU Grant, which is one billion and 70m euros.
– We have a deadline until 30. September, so if we don’t fulfill the obligation, we lose ten percent, and no one answers. Imagine that you make damage in the firm and no one asks why you made damage. This does not happen to people in politics and in functions – concludes Pavlović.
