The European Bank for Reconstruction and Development expects the economy of Bosnia and Herzegovina to grow by 2.7 percent in 2026, and predicts a slight acceleration to 2.8 percent in 2027, according to the latest report on regional economic prospects.
In its latest report on regional economic prospects, the European Bank for Reconstruction and Development states that it maintains its estimate that the gross domestic product of Bosnia and Herzegovina will grow by 2.7 percent in 2026, as it predicted in the forecast from September.
The analysis emphasizes that weaker demand from the Eurozone and potential political tensions during the 2026 election year are recognized as key risks for the country’s economic growth. It is emphasized that these factors could make it difficult to achieve the projections if there is a stronger deterioration of the external environment or a standstill in the domestic political processes.
For the year 2027, the EBRD predicts a slight acceleration of the economic growth of Bosnia and Herzegovina to 2.8 percent. The basis for this assessment is the expected growth in real incomes of the population and a higher level of investments, which should support domestic demand and investments in key sectors of the economy.
According to the bank’s estimates, the gross domestic product of Bosnia and Herzegovina in 2025 recorded a growth of 2 percent, which laid the foundation for a moderate acceleration in the coming years, with still present risks related to political trends and external economic conditions.
Within the Western Balkans region, which includes Bosnia and Herzegovina, Albania, Kosovo, Montenegro, North Macedonia and Serbia, the EBRD expects GDP growth to accelerate to 3.1 percent in 2026 after a rate of 2.5 percent in 2025, while the growth projection for 2027 is set at 3.5 percent. These forecasts indicate a gradual strengthening of economic activities in the entire region with differences in growth dynamics among individual countries, writes Klix.
