The perspectives of global foreign direct investments in 2025 are not encouraging, and the negative trends were also felt in Bosnia and Herzegovina. According to UNCTAD data, growing trade wars, political and economic uncertainty, and increased volatility in financial markets led to a sharp decline in investment activity around the world already at the beginning of the year.
Such an environment was also reflected in BiH, where in the first six months of 2025, a decline in foreign direct investment was recorded. According to the report, preliminary data from the Central Bank of Bosnia and Herzegovina show that foreign investments in the period from January to June amounted to 780.1 million KM, or 398.8 million euros.
Compared to the same period of the previous year, this is a drop of 12.5 percent, despite the fact that the estimated retained earnings of foreign companies operating in Bosnia and Herzegovina are included in the amount.
When it comes to the countries of origin of capital, the largest investors in BiH in the first half of 2025 were Croatia with 203.5 million KM, Germany with 174.2 million KM and Serbia with 108.3 million KM. More significant investment growth was also recorded from Slovenia, Austria and Italy.
At the same time, negative capital flows from certain countries were also recorded. The largest outflows were recorded from the Netherlands and Switzerland, 30.2 million KM each, and from the United Kingdom in the amount of 25.2 million KM. The largest increase in ownership shares came from Germany and amounted to 156.6 million KM.
By sector, most foreign capital went into financial services, with the exception of insurance and pension funds, where 204.6 million KM of investment was recorded. Retail trade and wholesale trade follow, while more significant investments were also recorded in the energy sector and the food industry.
The Agency for the Promotion of Foreign Investments of Bosnia and Herzegovina states that in 2026, the focus will be on the European Union market, especially the countries of Central Europe, but also the neighboring countries and countries of the Persian Gulf. Business forums, investment days and stronger cooperation with the diplomatic-consular network are planned.
For the year 2025, FiPA singled out 12 companies that have invested a total of about 530 million KM and employ more than 2,500 workers in Bosnia and Herzegovina. At the top of the list is VE Ivovik doo Sarajevo, with an estimated investment of more than 260 million KM, while prominent investors include Medicana Sarajevo and Joma Packaging doo Kreševo.
The list also includes companies such as Hemofarm, LPP, ELIN Motors, TEMAX, Concentrix BH and others, which continue to represent the backbone of foreign investments in the domestic economy, despite the unfavorable global investment environment.
