Economy

Bosnia and Herzegovina’s economic freedom score is 59.0, making its economy the 97th freest in the 2015 Index. Its overall score has increased by 0.6 point, with improvements in freedom from corruption, monetary freedom, and labor freedom partially offset by declines in investment freedom and business freedom. Bosnia and Herzegovina is ranked 38th out of 43 countries in the Europe region, and its score is below the global and regional averages.

Over the past five years, Bosnia and Herzegovina’s economic freedom has advanced by 1.5 points, registering its highest score ever in the 2015 Index. Reforms have led to improvements in half of the 10 factors, including government spending and labor, monetary, and trade freedoms, with an especially notable 12-point gain in freedom from corruption.

Despite a decade of concerted effort to improve economic prospects through broad, gradual institutional improvements, however, Bosnia and Herzegovina’s economy remains in the “mostly unfree” category, and deeper structural and institutional reforms are needed. In particular, fully eradicating corruption, guaranteeing the independence of the judiciary, and consistently enforcing property rights are vital to propelling the country to higher levels of economic freedom and prosperity.