SARAJEVO, Oct. 16 (Xinhua) -- Bosnia and Herzegovina's (BiH) economy is facing mounting challenges as Germany, one of its key trading partners, shows signs of slowdown in its industrial sector, its Foreign Investors Council (FIC) of BiH warned Thursday.
Suppliers in key export sectors - including automotive, metal, cable, wood, and furniture sectors - are reporting reduced orders, contract adjustments, and stronger pricing pressures, Nedim Makarevic, the council's executive director.
Germany's consecutive GDP declines, high energy costs, and weak investment have further strained BiH exporters, he said.
Wood exports from BiH to Germany have fallen by about 15 percent, while sales of automotive components and cable assemblies are hit by lower German auto production, according to FIC.
Makarevic emphasized the importance of market diversification and a greater focus on value-added products. FIC is encouraging exports to markets within the Central European Free Trade Agreement, the European Free Trade Association, the Gulf Cooperation Council, Britain, and the United States, particularly in metals, electrical components, IT services, and smart furniture.
He cautioned that a weaker German labor market could reduce diaspora remittances by up to 15 percent, though inflows remain above 2.3 billion U.S. dollars in 2024.
The FIC recommends investing in technology, workforce development, and green transition opportunities, while strengthening diaspora connections to boost domestic investment. Enditem
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