[25] According to Serbian American economist, Branko Milanović, Bosnia and Herzegovina did the best job in the transition from socialism to capitalism when compared to the other republics of the former Yugoslavia.

From 1985 until 2021, Bosnia and Herzegovina performed the best on the annual average GDP growth per capita (1.6%), Slovenia (1.4%), Croatia (1%), Serbia without Kosovo (0.9%) and North Macedonia (0.5%).

[24] Under former republican premier Džemal Bijedić, and Yugoslav president Tito, metal-product industries were promoted in the republic, resulting in the development of a large share of Yugoslavia's metal products plants.

Merging small firms into larger agglomerates was a common practice in the SFRY to preserve employment levels.

Construction and defence were important industries in the Bosnian economy, despite their low efficiency and, ultimately, excess supply.

Agriculture was not highly developed, despite its importance for employment and the presence of the large Agrokomerc conglomerate based at the north-west border with Croatia.

The economy suffered heavily from the war in Bosnia and Herzegovina, with over €200 billion in material damages[27] and GDP (excluding services) reduced by 90% between 1990 and 1995.

Due to Bosnia's strict currency board regime attaching the Bosnian mark to the Euro, inflation has remained low in the entire country.

Support for East European Democracy (SEED) assistance accounts for 20%-25% of economic growth in Bosnia and Herzegovina.

This result is below the regional level, but still above the global average, making Bosnia and Herzegovina a "moderately free" country.

Various new modern buildings have been built, most significantly the Bosmal City Center, ARIA Centar and the Avaz Twist Tower, which is one of the tallest skyscraper in the Balkans.

Due to growth in population, tourism and airport traffic the service sector in the city is developing fast and welcoming new investors from various businesses.

[62] Mostar's economy relies heavily on tourism, aluminium and metal industry, banking services and telecommunication sector.

[63][64] Bosnia-Herzegovina has three national electric, postal and telecommunication service corporations; These three companies banks and the aluminium factory make a vast portion of overall economic activity in the city.

The city's geographical location close to major European capitals has made it an important industrial and commercial hub nationally.

The city's huge economic potential is in the strategic geographical location being close to Zagreb, Belgrade, Budapest and Vienna.

The service sector in Prijedor is growing rapidly and this reflects in the growth of hotels, stores, roads, educational facilities and shoppings centers that are being built in the city.

A number of big companies such as Telekom Srpske, Rafinerija ulja Modriča, Banjalučka Pivara and Vitaminka are all listed on the exchange and are traded regularly.

Investors, apart from those from Slovenia, Croatia and Serbia, now include a number of investment funds from the European Union, Norway, the United States, Japan and China.

A number of financial services regulators, such as the Indirect Taxation Authority of Bosnia and Herzegovina, Republika Srpska Securities Commission and the RS Banking Agency are headquartered in Banja Luka.

[61] The country has been a heavy user of energy compared with the EU, with artificially low prices providing a disincentive to make savings.

[66] Tuzla Thermal Power Plant was supposed to close unit 4 in 2022 however the government has extended this lignite coal generators life.

Bosnia and Herzegovina has been a top performer in recent years in terms of tourism development; tourist arrivals have grown by an average of 24% annually from 1995 to 2000.

The European region's solid growth in arrivals in 2007 was due in significant part to Southern and Mediterranean Europe's strong performance (+7%).

Of particular note is the diaspora population which often returns home during the summer months, bringing in an increase in retail sales and food service industry.

Complicated bureaucracy system, complex procedures and often misconducted audition and regulation by public officers also make for volatile and insecure business environment, which is considered major hindrance to foreign investment into the country's industrial and manufacturing potential.

The Bosnian government has issued an international tender for the construction of the 350 km long Pan-European Corridor Vc in Bosnia and Herzegovina which will passes along the route Budapest-Osijek-Sarajevo-Ploče.

The highway along this corridor is the most significant roadway in Bosnia and Herzegovina and the shortest communication route between Central Europe and the Southern Adriatic.

The routing of the road passes through the central part of the country in the north–south direction from Donji Svilaj to the border of B&H, north from the Croatian port of Ploče, following the rivers Bosna and Neretva.

[73] Due to annual growth of nearly 10% the Sarajevo International Airport extension of the passenger terminal, together with upgrading and expanding the taxiway and apron is planned to start in Fall 2012.