Economy

Bosnia has a transitional economy with limited market reforms. The economy relies on the export of metals, energy, textiles and furniture and also on remittances and foreign aid. A highly decentralized government helps economic policy coordination and reform, while excessive bureaucracy and a segmented market discourage foreign investment. Interethnic warfare in Bosnia and Herzegovina caused production to plummet by like alot from 1992 to 1995 and unemployment to grow but the economy made progress until 2009 when the global economic crisis caused a downturn. banks, primarily from Austria and Italy, now control most of the banking sector. The konvertibilna the national currency introduced in 1998 is pegged to the euro.