The Bosnian economy is characterized as a developing economy, primarily based on services, industry, and agriculture. The country has a diverse industrial sector, including metal processing, textiles, and food production. However, it faces challenges such as high unemployment rates and a need for infrastructure improvements. Bosnia and Herzegovina relies heavily on foreign investments and remittances from its diaspora. The government has been working to implement reforms to attract more investment and improve the business environment. Additionally, the country is a potential candidate for European Union membership, which could further influence its economic development.