Bosnia and Herzegovina is situated in Balkan Peninsula, Southeastern Europe bordering with Croatia, Serbia and Montenegro. It has a 13 km long coastline at the Adriatic Sea. It covers an area of about 51.000 square km, comprising mostly of mountainous and valley regions with temperate continental climate. It is rich in natural resources especially fresh water.

Location: Southeastern Europe, Balkan Peninsula, bordering with Republic of Croatia to the North and West and with the Republic of Serbia and Montenegro to the East. It has a 13 kilometers long coastline at the Adriatic Sea.

Total area: 51.000 km², including 27.000 km² of forests which makes about 53% of total area.

Climate: Mediterranean climate in southwestern region, continental-mountainous (Alpine) climate in the central part of the country while moderate-continental (Central European) climate is dominant in the north of BiH.

Population: Estimated population of BiH is about 4.5 million inhabitants.

Ethnic structure: Bosniaks, Croats and Serbs along with numerous minorities.

Official languages: Bosnian, Croatian and Serbian

Political system: The State of Bosnia and Herzegovina is made up of three administrative units – two Entities (Federation of BiH and Republic of Srpska) and Brcko District. The Constitution of BiH is civil constitution incorporated in Dayton Peace Agreement (DPA) signed on December 14th 1995, as Annex IV of DPA. Each Entity also has its own constitution. The estimated population of BiH is about 4.5 million inhabitants, with about 10% of the population living in the capital city of Sarajevo, which is located in the central region of the country. BiH is oriented toward the accession to the European Union and NATO as well as toward strengthening regional cooperation within the Western Balkans Region.

Economy: Official currency in Bosnia and Herzegovina is “the Convertible Mark” (BAM)

Gross Domestic Product for the year 2009 is estimated at about 17.5 billion dollars. For the same year, GDP per capita is estimated at about 6,300 dollars. GDP structure is as follows: agriculture 20.5%, industry 32.6% and services 47%.

BiH is currently in the negotiation process for WTO membership, and in 2008 it has signed the Stabilization and Association Agreement with the European Union by which BiH gained a “potential candidate” for EU status. The SAA was ratified by BiH, all the EU Member States and the EU Parliament and its entry into force is expected in 2011. BiH signed the CEFTA 2006 Agreement in 2006, which is being implemented since 2007.

The economy of Bosnia and Herzegovina is based on liberal concepts. Its major foreign-trade partners are Croatia, Slovenia, Germany, Italy, Hungary, Turkey and Austria. Main industrial products of BiH are base materials, wood and wood products as well as electricity.