neasy peace in place, output recovered in 1996-99 at
high percentage rates from a low base; but output growth slowed in
2000-02. Part of the lag in output was made up in 2003-07 when GDP
growth exceeded 5% per year. National-level statistics are limited
and do not capture the large share of black market activity. The
konvertibilna marka (convertible mark or BAM)- the national currency
introduced in 1998 - is pegged to the euro, and confidence in the
currency and the banking sector has increased. Implementing
privatization, however, has been slow, particularly in the
Federation, although more successful in the Republika Srpska.
Banking reform accelerated in 2001 as all the Communist-era payments
bureaus were shut down; foreign banks, primarily from Western
Europe, now control most of the banking sector. A sizeable current
account deficit and high unemployment rate remain the two most
serious macroeconomic problems. On 1 January 2006 a new value-added
tax (VAT) went into effect. The VAT has been successful in capturing
much of the gray market economy and has developed into a significant
and predictable source of revenues for all layers of government.
Bosnia and Herzegovina became a full member of the Central European
Free Trade Agreement in September 2007. The country receives
substantial reconstruction assistance and humanitarian aid from the
international community but will have to prepare for an era of
declining assistance.

GDP (purchasing power parity):

$27.7 billion
note: Bosnia has a large informal sector that could also be as much
as 50% of official GDP (2007 est.)

GDP (official exchange rate):

$14.78 billion (2007 est.)

GDP - real growth rate:

6% (2007 est.)

GDP - per capita (PPP):

$6,100 (2007 est.)

GDP - composition by sector:

agriculture: 10.2%
industry: 23.9%
services: 66% (2006 est.)

Labor force:

1.026 million (2001)

Labor force - by occupation:

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:

45.5% official rate; grey economy may reduce actual unemployment to
25-30% (31 December 2004 est.)

Population below poverty line:

25% (2004 est.)

Household income or consumption by percentage share:

lowest 10%: 3.9%
highest 10%: 21.4% (2001)

Distribution of family income - Gini index:

26.2 (2001)

Budget:

revenues: $7.094 billion
expenditures: $7.137 billion (2007 est.)

Fiscal year:

calendar year

Public d