WORLDBANKGROUP CountryEconomicMemorandum BOSNIAANDHERZEGOVINA PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized Macroeconomics,Trade&Investment January2024 Acknowledgments TheBosniaandHerzegovinaCountryEconomicMemorandumhasbeenpreparedbyabroadmulti-sectoralteamofWorldBankexpertsledbyTihomir(Tish)Stuč-ka(SeniorEconomist,TaskTeamLeader)andSandraHlivnjak(SeniorEconomist,TaskTeamLeader).OnChapter1,theteamincludedZuhraOsmanović-Pašić(Se-niorGovernanceSpecialist),JaneHwang(SeniorFinancialSectorSpecialist),RuvejdaAliefendić(SeniorPrivateSectorSpecialist),MelihaKozarićFanning(LaborMarketConsultant),StevenPennings(SeniorEconomist),GuidoDamonte(Consultant),Fed-ericoFiuratti(Consultant),AmraMujabašić(Consultant)andSrđanKujundžić(Con-sultant).OnChapter2,theteamincludedNicoloDalvit(Economist)andBesartAvdiu(SeniorEconomist).Finally,onChapter3,theteamincludedRachelBernicePerks(SeniorMiningSpecialist),DzenanMalović(SeniorEnergySpecialist),JustineMorvenSylvester(LandTenureSpecialist),EfstratiosTavoulareas(EnergyConsultant),andUlrikeLehr(SeniorEconomist).ThereportwasdesignedbyViganKada. TheteamishighlyindebtedtoShireenMahdi(LeadEconomist)andHarshitAgrawal(SeniorGasSpecialist),whoactedaspeerreviewersforthisreport. TheteamisgratefultoXiaoqingYu(WorldBankRegionalDirectorfortheWesternBalkans),ChristopherSheldon(WorldBankCountryManagerforBosniaandHerze-govina),JasminChakeri(PracticeManager),RichardRecord(LeadEconomist),Chris-tosKostopoulos(LeadEconomist)andtheWesternBalkansCountryManagementTeamfortheirguidanceandsupportthroughoutthistask. TheBosniaandHerzegovinaCEMbenefitedfromtheclosecooperationwiththePrimeMinisters’OfficesintheFederationBiHandRepublikaSrpska,theMinistryofFinanceintheFederationBiHandRepublikaSrpska,theMinistryofEnergyinRepub-likaSrpska,andRepublikaSrpskaAPIF. TheBosniaandHerzegovinaCountryEconomicMemorandumwasinpartsupportedbytheUmbrellaFacilityforGenderEquality(UFGE).TheUFGEisamulti-donortrustfundadministeredbytheWorldBanktoadvancegenderequalityandwomen’sem-powermentthroughinnovationandknowledgecreationtohelpgovernmentsandtheprivatesectorfocuspolicyandprogramsonscalablesolutionswithsustainableoutcomes.TheUFGEissupportedwithgenerouscontributionsfromAustralia,Can-ada,Denmark,Finland,Germany,Iceland,Ireland,Latvia,theNetherlands,Norway,Spain,Sweden,Switzerland,UnitedKingdom,UnitedStates,theBillandMelindaGatesFoundation,andtheWellspringPhilanthropicFund. ©ThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotneces-sarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent. TheWorldBankdoesnotguaranteetheaccuracyofthedataincludedinthiswork.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries. RightsandPermissions Thematerialinthisworkissubjecttocopyright.BecauseTheWorldBankencour-agesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattri-butiontothisworkisgiven.Anyqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications, TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. Coverdesign,layoutdesignandtypesetting: ViganKada Abbreviations BAMBosnianConvertibleMark BDBrckoDistrict BiHBosniaandHerzegovina BISBankforInternationalSettlements CBACostBenefitAnalysis CBAMCarbonBorderAdjustmentMechanism CEMCountryEconomicMemorandum ECEuropeanCommission ECAEuropeandCentralAsia ECIEconomicComplexityIndex ECSEnergyCommunitySecretariat EPBiHElektroprivredaBiH EPHZHBElektroprivredaHrvatskeZajedniceHercegBosne ERPEconomicReformProgram ERSElektroprivredaRS ETSEmissionTradingSystem EUEuropeanUnion EUREuro FBiHEntityofFederationBiH FDIForeignDirectInvestment FLFPFemaleLaborForceParticipation GAPGenderActionPlan GDPGrossDomesticProduct GFCGlobalFinancialCrisis GHGGreenhouseGases GNIGrossNationalIncome GVAGrossValueAdded GWGigaWatt HICHighIncomeCountry IDAInternationalDevelopmentAssociation IEDIndustrialemissionDirective IMFInternationalMonetaryFund LCPLeastCostPlanning LCPDLargeCombustionPlantsDirective LFPLaborForceParticipation LFSLaborForceSurvey LHSLeftHandSide LICLowIncomeCountry LTGMLongTermGrowthModel MICMiddleIncomeCountry MOFTERMinistryofForeignTradeandEconomicRelations MRIOMulti-RegionalInput-Output MRVMonitoring,ReportingandVerification MTMetricTon MWMegaWatt NACENomenclaturestatistiquedesActiviteseconomiquesdanslaCommu-nauteEuropeenne NEETNeitherinEducation,Employment,orTraining NEMONominatedElectricityMarketOperator NERPNationalEmissionReductionPlans NPVNetPresentValue OECObservatoryofEconomicComplexity PMParticleMatter(alsocalledParticlePollution) PPPerce