Standard and Poor’s (S&P) has affirmed Bosnia and Herzegovina’s credit rating at ‘B+’ with a stable outlook. Despite internal and external challenges, the BH economy displayed resilience in the first half of 2024. S&P analysts predict a real growth of 2.8% this year driven by increased consumption, lower inflation, and rising wages. They anticipate stronger investment in energy and road construction, along with a boost in external demand leading to almost 3% growth from 2025-2027.
Bosnia and Herzegovina’s net debt is below 20% of GDP, considered moderate for developing nations. The country’s debt mainly consists of longer-term loans at favorable rates. Analysts project a low current account deficit of slightly above 3% for the next four years, with the maintenance of the currency board arrangement.
S&P suggests that an upgrade in the credit rating is possible with consensus-based political decisions driving structural reforms and economic growth, especially concerning EU accession. Overall, Bosnia and Herzegovina’s economic outlook remains positive and stable.