AGP Executive Report

SME Competitiveness: An EU-backed OECD report says small and medium-sized firms make up 99.7% of businesses in Bosnia and Herzegovina and account for over 70% of jobs. It calls for stronger policies to help them grow and compete. Trade: Exports have topped 13 billion BAM, but the country’s trade deficit continues to widen. Energy Costs: Wholesale natural gas prices in the Federation of BiH rose 12% from October, adding to household and business costs ahead of winter. Investment and Connectivity: In Budapest, BiH Presidency Chair Denis Bećirović proposed restoring direct Sarajevo–Budapest air and rail links to support trade, tourism and investment. Business Support: Croatia has launched a €2.9 million programme to fund business infrastructure projects in BiH. Tourism: Sarajevo Airport’s winter schedule adds Prague, Bratislava and Berlin flights, opening new links to European markets.

Hungary Ties: Denis Bećirović and Hungary’s new prime minister discussed investment and economic cooperation; Bećirović proposed restoring direct Sarajevo–Budapest flights and passenger rail links to support trade and tourism. Transport: Sarajevo Airport’s winter schedule adds Prague, Bratislava and Berlin, with Wizz Air flights starting in December. Energy Costs: Federation gas wholesale prices rose 12% from October, the fourth increase this year, raising costs for households and businesses ahead of winter. Trade: BiH exports exceeded BAM 13 billion, but the trade deficit continued to widen. Vehicle imports are also surging while the country’s fleet remains among Europe’s oldest. Financial Sector: BiH institutions are working through the FATF action plan after the country was placed on the grey list, addressing weaknesses in supervision and financial-crime controls. Digital Business: Mostar-based insurance comparison startup Covrii drew more than 15,000 visitors during testing and is expanding from motor to property insurance.

Hungary Ties: BiH Presidency Chair Denis Bećirović proposed restoring direct Sarajevo–Budapest flights and passenger trains to support trade, tourism and investment, and called for stronger economic cooperation. Air Connectivity: Sarajevo Airport’s winter schedule adds Wizz Air flights to Bratislava, Berlin and Prague, opening new links for travelers and visitors. Energy Costs: Wholesale gas prices in the Federation have risen 12% from October, the fourth increase this year, adding pressure on households and businesses ahead of winter. Trade: BiH exports have topped 13 billion BAM, but the foreign trade deficit continues to widen. Financial Integrity: BiH institutions are working with EU support to address FATF grey-list concerns, including gaps in supervision and risk assessment. Local Innovation: Mostar-based digital insurance platform Covrii has attracted more than 15,000 visitors during testing and expanded from motor insurance into property coverage.

Air Links: Sarajevo Airport’s winter schedule starts October 25, with Wizz Air adding Bratislava, Berlin and Prague — new routes that could boost visitor access. Financial Integrity: BiH institutions, backed by the EU, are working to address gaps that led to the country’s FATF grey-listing and strengthen confidence in its financial system. Trade and Investment: Exports have topped KM13 billion, but the trade deficit continues to widen. Croatia has also launched a €2.9 million programme for business infrastructure in BiH. Business Innovation: Mostar-based Covrii, a digital insurance comparison platform, drew more than 15,000 visitors during testing and is expanding beyond car insurance. Prices and Transport: Prices in the Federation rose 5.7% year on year, while vehicle imports surged even as BiH’s car fleet remains among Europe’s oldest. EU Ties: The EU and Western Balkan partners agreed to deepen research and innovation cooperation, with potential opportunities for businesses and young innovators.

Digital Insurance: Mostar-based Covrii, a new insurance comparison platform, drew more than 15,000 visitors during testing and is expanding beyond motor coverage. Vehicle Market: Imports are surging as Bosnia and Herzegovina’s fleet remains among Europe’s oldest; the used-car market is ten times larger than the new-car market, with typical prices of BAM 25,000–30,000. Trade: Exports have exceeded BAM 13 billion, but the country’s trade deficit continues to widen. Financial Sector: More than 30 institutions are coordinating work to address FATF grey-list concerns, including weaknesses in supervision and risk assessment. Costs: Wholesale natural gas prices in BiH are set to rise 12%, while consumer prices in the Federation were up 5.7% year over year. Business Support: Croatia has launched a €2.9 million programme for business infrastructure in BiH, as local small firms continue to face financing and digital-skills gaps.

EU Integration: EU leaders will press Bosnia and Herzegovina and five other Western Balkan countries to speed up reforms, with closer access to the EU market among the benefits under discussion. Cars: Used-vehicle imports are surging as Bosnia’s fleet remains one of Europe’s oldest; second-hand cars sell for an average of KM 25,000–30,000, and the market is about ten times larger than the new-car market. Trade and Energy: BiH exports have topped BAM 13 billion, but the trade deficit is still widening; meanwhile, the Federation has approved a 12% increase in wholesale natural-gas prices. Small Business: SMEs make up 99.7% of registered businesses and 70.7% of employment, yet productivity stands at only 48% of the EU average, with financing gaps, labour shortages and complex rules holding firms back. Investment and Connectivity: Croatia has launched a €2.9 million programme for business infrastructure in Bosnia, while Starlink is now available, with business plans priced from BAM 59 a month.

Regional Integration: At the Berlin Process summit, German Chancellor Friedrich Merz backed faster EU accession for the Western Balkans, while Bosnia and Herzegovina’s Borjana Krišto highlighted plans to expand the Common Regional Market, digital services, transport links and tourism. Trade: BiH exports rose 6.3% in the first nine months to 13.4 billion BAM, but imports grew 8.6% to 24.15 billion, widening the deficit to more than 10.7 billion BAM. Energy Costs: The Federation approved a 12% wholesale gas price increase, the fourth this year; Sarajevo’s prices have risen about 31% since January. Small Business: An OECD review says SMEs account for nearly all registered businesses but remain held back by limited finance, weak innovation, labour shortages and complex rules. Digital Access: Starlink is now available in BiH, with residential plans starting at 68 BAM a month and business packages from 59 BAM. Energy Deal: Hungary’s MOL has signed to acquire the Russian stake in Serbia’s NIS, with competition approval in Bosnia and Herzegovina still required.

Digital Services: Starlink is now available in Bosnia and Herzegovina, with home plans starting at BAM 68 a month and business packages priced from BAM 59 to BAM 572, expanding connectivity options for companies. Small Businesses: An OECD assessment says SMEs make up 99.7% of registered firms and 70.7% of employment, but productivity is just 48% of the EU average; limited finance, skills shortages and uneven policy delivery are holding back growth. Energy Costs: The Federation has approved a 12% increase in wholesale natural-gas prices, the fourth rise this year; cumulative increases in Sarajevo have reached about 31%. Trade: BiH exports rose 6.3% to BAM 13.4 billion in the first nine months, but imports grew faster, widening the deficit beyond BAM 10.7 billion. Regional Energy Deal: Serbia says Hungary’s MOL has agreed to buy the Russian stake in oil company NIS, with competition clearance in BiH still required; MOL says it has no new developments to report.

Small Business: SMEs account for nearly all registered firms and about 71% of business employment in Bosnia and Herzegovina, but OECD findings flag weak productivity, limited finance, labour shortages and uneven policy implementation as barriers to growth. Energy Costs: The Federation approved a 12% wholesale gas price rise, effective October 1, after supplier costs climbed; it is the fourth increase this year, with Sarajevo’s cumulative rise reaching about 31%. Trade: BiH exports rose 6.3% to 13.4 billion KM in the first nine months, but imports grew faster, up 8.6% to 24.15 billion KM, widening the deficit beyond 10.7 billion KM. Regional Energy: Serbia’s finance minister says Hungary’s MOL agreed to buy the Russian stake in oil company NIS, with approvals in Serbia and BiH still required. MOL, however, says there are no new developments to report. Investment: Croatia opened a €2.9 million grant programme for business infrastructure projects in BiH, with awards ranging from €50,000 to €290,000.

Trade: Bosnia and Herzegovina’s exports rose 6.3% to 13.4 billion KM in the first nine months of 2026, but imports grew faster, up 8.6% to 24.15 billion KM. The trade deficit topped 10.7 billion KM. Energy: Serbia says Hungary’s MOL has agreed to buy the Russian majority stake in oil company NIS, with competition approvals in Serbia and BiH still needed. Serbia also plans to raise its stake from 30% to 35%; MOL says there has been no relevant change to report. Prices: Consumer prices in the Federation of BiH were 5.7% higher year-on-year in September, with a 1.4% increase from August. Investment: Croatia has opened a €2.9 million programme for business infrastructure projects in BiH, offering grants of €50,000 to €290,000 to local and regional authorities.

Export Markets: Bosnian companies presented their products at SIAL Paris, seeking new business contacts and a stronger foothold in international food markets. Energy Investment: Federation Prime Minister Nermin Nikšić and US diplomat John Ginkel reaffirmed support for the South Gas Interconnection project. Trade: Bosnia and Herzegovina’s egg exports recorded significant growth; dairy exports also exceed imports by volume, though the country still spends 108 million BAM more on dairy imports than it earns from exports. Business Support: Sarajevo Canton set aside one million BAM to help businesses replace solid-fuel heating. EU Funding: The EU granted €1 million to improve customs and border operations, while Bosnia and Herzegovina risks losing €374 million if it misses a Growth Plan deadline.

Energy and Investment: Federation Prime Minister Nermin Nikšić and U.S. chargé d’affaires John Ginkel discussed American investment, improving the business climate and advancing the Southern Gas Interconnection project. EU Funding: Bosnia and Herzegovina risks losing €374 million as the deadline for its Growth Plan approaches. Trade: Egg exports are growing, while the country exports more milk and dairy products than it imports but still pays BAM 108 million more for dairy imports. Business Support: Sarajevo Canton has allocated BAM 1 million to help businesses replace solid-fuel heating. Tax Enforcement: The Federation tax authority imposed fines totalling nearly BAM 376,000.

Energy Investment: FBiH Prime Minister Nermin Nikšić and US chargé John Ginkel reaffirmed support for the Southern Gas Interconnection, with talks also covering US investment and the business climate. EU Funding: Bosnia and Herzegovina risks losing €374 million as the deadline to meet Growth Plan requirements expires; the EU has separately granted €1 million to improve customs and border operations. Economic Outlook: The IMF expects slower growth and rising inflation in BiH. Business Support: Sarajevo Canton has allocated BAM 1 million to help businesses replace solid-fuel heating. Trade: BiH’s egg exports are growing, while dairy exports exceed imports but the country still pays BAM 108 million more for imported dairy products.

Wages and Politics: Newly elected representatives could earn up to 8,500 BAM a month, while many workers make around 1,300 BAM and some need a second job to support their families. Agricultural Trade: Egg exports rose 23% in value in the first eight months, reaching 15.16 million BAM and a trade surplus of more than 4 million BAM; producers say access to the EU market could unlock further growth. Growth and EU Funding: The IMF expects slower growth and higher inflation in Bosnia and Herzegovina, while the country risks losing 374 million euros as the Growth Plan deadline expires. Tax Compliance: Federation inspectors found 58 undeclared workers in 240 checks and imposed nearly 376,000 BAM in fines; more than half of inspected businesses had violations. Trade Balance: BiH exports more milk and dairy products than it imports by volume, but still pays 108 million BAM more for imports.

Poultry Exports: Egg export value rose 23% to 15.16 million BAM in the first eight months, but producers say growth is limited because BiH cannot sell Class A table eggs in the EU. Tax Compliance: FBiH inspectors imposed nearly 376,000 BAM in fines after finding 58 undeclared workers; 52% of inspected taxpayers had violations. Wages: The average net salary in the Federation fell 2.8% month on month in August to 1,708 BAM, though it was up 7.1% year on year. EU Funding: Bosnia risks losing €374 million as the Growth Plan deadline approaches. Trade and Growth: The IMF warns of slower growth and rising inflation, while dairy exports exceed imports in volume but BiH still spends 108 million BAM more on dairy imports than it earns from exports.

Poultry Exports: Bosnia and Herzegovina’s egg exports rose 23% in value to 15.16 million KM in the first eight months, leaving a surplus of more than 4 million KM. Producers say growth is constrained by the lack of EU market access for Class A table eggs. Tax Enforcement: FBiH inspectors imposed nearly 376,000 KM in fines after finding 58 undeclared workers during 240 inspections; 52% of businesses checked had violations. Economic Outlook: The IMF says BiH faces slower growth and rising inflation, while the country risks losing €374 million because the deadline for its EU Growth Plan has passed. Trade and Industry: BiH exports more dairy products than it imports, but still spends 108 million KM more on dairy imports than it earns from exports. Farmers are urging stronger protection for domestic production. Business Support: Sarajevo Canton has allocated 1 million KM to help businesses replace solid-fuel heating systems, while the EU is providing €1 million to improve BiH’s customs and border operations.