Sarajevo Canton

Sarajevo Canton operates as Bosnia-Herzegovina's economic keystone, generating over 37% of national GDP from a territory containing 413,593 residents—roughly 12% of the population producing more than a third of economic output. This concentration reflects both the capital city's natural advantages (government employment, financial services, international presence) and the war-driven destruction of economic capacity elsewhere that made Sarajevo relatively more dominant.

Tourism experienced remarkable growth: National Geographic named Sarajevo the world's best destination for 2025, and visitor arrivals increased 30% while the December 2024-January 2025 holiday period generated 160 million BAM in economic turnover. The banking sector remains well-capitalized and liquid, attracting regional headquarters from Raiffeisen, Ziraat, and other international banks. IT and business services cluster around the capital, benefiting from a relatively educated workforce.

The siege of 1992-95 remains economically relevant. Sarajevo's economy, once centered on heavy industry (armaments, vehicles), shifted toward services during post-war reconstruction. Manufacturing capacity destroyed during the siege was never fully rebuilt, accelerating deindustrialization that might otherwise have taken decades. Infrastructure investment now focuses on the EU-funded Corridor 5c motorway and renewable energy, though 15% official unemployment indicates continued labor market challenges.