A comparison of the key economic indicators of the two entities in Bosnia and Herzegovina clearly shows that the Federation of BiH has a stronger and more stable economy compared to Republika Srpska, especially when it comes to public debt, fiscal sustainability and demographic trends.
According to official data for the end of 2024, Republika Srpska achieved a gross domestic product (GDP) of 17.1 billion KM, while its public debt reached 6.7 billion KM. This means that the share of public debt in GDP is 39.18%. In the Federation of Bosnia and Herzegovina, the GDP is 34.4 billion KM, and the debt is 6.872 billion KM, i.e. 20.51% of GDP – almost twice less than in the RS.
In addition, data from the Ministry of Finance and Treasury of BiH show a significant difference in the indebtedness of the population. In the Republic of Srpska, the debt per capita exceeds 6,000 KM, while in the Federation it is around 3,000 KM.
Republika Srpska also faces serious challenges in the debt structure, since as much as 1.7 billion KM is due for payment as early as 2026. This creates enormous pressure on the budget and deepens the risk of entering into a new round of borrowing.
Demographic indicators further worsen the economic picture. The RS has more pensioners than employees – 293,000 pensioners against 289,000 workers – which seriously burdens the pension and fiscal system. In FBiH, the situation is much more favorable: 545,018 employees and 458,322 pensioners.
Migration also benefits the Federation. Only in 2024, FBiH recorded 21,678 immigrated residents, while in the RS that number was 9,919.
All these data indicate that the Federation of BiH currently has a more stable economic position, lower indebtedness, a more favorable ratio of workers and pensioners, and better demographic trends. Republika Srpska, on the other hand, faces high debt, negative demographic trends and increasing financial obligations that will further burden its budget in the coming years, writes NOISE.
