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Production in industry (sts_ind_prod)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Agency for statistics of Bosnia and Herzegovina 

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Data on indices of the physical volume of production of industrial products are published for the section and division levels of economic activities in accordance with the Classification of Economic Activities of BiH 2010 (hereinafter: KD BiH 2010), for the Main Industrial Groups level (MIGs) and for the Total Industry level based on data collected through Monthly survey on industrial production (M KPS IND-1). 

31 July 2025

The index shows the monthly movement of production in terms of the volume of production, that is, changes of the volume of production of products (goods and services) in accordance with the Nomenclature of Industrial Products for a monthly survey - Monthly NIP BiH 2024 which is harmonized with the EU PRODCOM List and which covers the products from the sections B, C and D (except group 35.3) according to KD BiH 2010 (NACE Rev.2). The Monthly NiP BiH 2024 comprises the products which have also been defined under the Classification of Products by Activity - KPPD BiH 2010 (CPA 2008), which implies the “product”, rather than “activity”, approach. Changes in the product quality relative to the changes in the quantity of production of products are taken into account when they actually occur. This is made by updating the weights. Concepts and definitions used in this survey are defined in the Methodological Document for calculation of a volume Index of Industrial Production and in the methodological notes contained in the press release.

Detailed definitions of indicators are described in the new European Business Statistics (EBS) Regulation no. 2019/2152 and Commission Implementing Regulation (EU) 2020/1197 (Variable 140101 - Production (volume)) as well as in the EBS Manual 2021.

Through the Monthly Survey of Industrial Production (M KPS IND-1) data are collected from the reporting units in monthly periodicity, obtained at the level of industrial product, that is the quantity produced in the reporting month, and the cumulative quantity produced from the beginning of the year to the end of the reporting month, according to the measurement units defined in the Monthly NIP BiH 2018 (including the own production and/or contracted production). The Industrial Production Index (IPI) for BiH has been calculated based on the produced quantity of products, which includes all products (goods and services) produced in the reporting month, whether sold or used as an input for further production or entered into the stocks of products for sale. Laspeyres 2-step formula is used. During step 1, indices are calculated based on the quantity of every individual product (product level) defined by the Monthly NIP BiH 2018 and a relevant weight (that is, coefficient), which forms an estimated value added to every individual product. NOTE: Changes in the product quality relative to the changes in the quantity of production of products have been taken into account when they actually occur. After that, all indexes from the group level and higher aggregation levels are weighted with the shares of value added of every individual level of activities (group, division, section, MIGs, according to NACE Rev.2) of industrial production in total value added of the industry. Further explanations of the calculation method are provided in the Methodology, which is available at the two foregoing links.

Reporting units are enterprises and LKAUs dealing with the production of industrial products (goods and services) defined under the Nomenclature of Industrial Products. LKAUs are used in cases when the enterprise’s principal activity falls outside the NACE Rev.2 sections B, C, and D, except group 35.3. This survey does not cover the reporting units (enterprises and LKAUs) outside the territory of Bosnia and Herzegovina. Full implementation of KAUs as reporting units, in accordance with the requirements of the new European Business Statistics (EBS) Regulation no. 2019/2152 and Commission Implementing Regulation (EU) 2020/1197, is done starting from January 2023. 

Observation units are all industrial products defined by the Monthly NIP BIH 2018 produced by the reporting units.

The target population covers all active enterprises from sections B, C and D (except group 35.3) according to NACE Rev.2 and amounts to 6,965 active enterprises (note: entrepreneurs are not included in the target nor frame population) based on data available from the Statistical Business Register of BiH. Section B contains 244 units, Section C contains 5,914 units and 807 units are in Section D. Approximately 4,130 enterprises are those with less than 20 persons employed in sections B, C and D (except 35.3) by NACE Rev.2.

Approximately 1,600 enterprises and KAUs are included in the IPI calculation based on a chosen cut-off sample by using at least 20 persons employed threshold and in exceptional cases, smaller enterprises (with less than 20 persons employed) in order to fulfill 90% of the value added on the group level of activity. The sample was drawn by using SBR in combination with data from PRODCOM and SBS surveys.

Statistical population includes the observation units – industrial products defined by the Monthly NIP BiH 2024 (harmonized with PRODCOM List 2024) which are produced by the reporting units (enterprises performing industrial activities, sections B, C and D – excluding group 35.3 or KAUs as a part of the enterprise which secondary activity falls outside the sections B, C or D except group 35.3 according to NACE Rev.2). 

The BiH territory (includes two entities – the Federation of Bosnia and Herzegovina, Republika Srpska and the Brčko District)

The reference period is a calendar month.

Considering a very high rate of responses, about 98%, the overall accuracy is very good.  For all reporting units included in the sample, data must be completed before data compilation (reporting units are re-called or visited, and, if even after re-calling it is not possible to obtain data from them, imputation shall be applied).  The exclusion of small enterprises shall not lead to an important bias in the series

Units of measure for every single product, which are used as inputs (product quantities) in the calculation of IPI are defined under the PRODCOM List – Monthly NIP BiH 2024.  This survey data has been published as the industrial production physical volume in the form of index numbers

IPI for BiH is Laspeyres type chain index which is calculated based on coefficients/weights from 2021 (as a base year) at the product level, while the weighting structure from the previous year is used for the activity structure (activity level). 

Index compilation has been done as follows:  it starts from the micro level – product level where the total production is calculated for every product defined under the Monthly NIP BiH 2024 through the aggregation of all productions of the same product across all producers.  Thereafter, these quantities are multiplied by the weighting coefficient in order to get the value-added “mass” for each product, which is then summed to the 4-digit level of KD BiH 2010.  Then, the “mass” are summed from 4 to 3-digits (Group levels) of KD BiH 2010. After that, relatives are calculated from this “mass”. Afterward, these relatives are multiplied to the 2-digit levels of KD BiH 2010 and higher levels as well as for the MIG level, by using coefficients/weights of value added obtained from the SBS survey.  Basically, the IPI calculation consists of 2 steps:

Step 1 – indices at the 4- and 3- digit levels of KD BiH 2010 are calculated from volume data obtained by multiplying the produced quantity of each product defined under the Monthly NIP BiH 2018 and appropriate weighting coefficients, using the Laspeyres formula.

Step 2 – for all indices of higher level and MIGs, they are calculated by aggregating the group indices (3-digits) of KD BiH 2010 - weighted with the “Group” share of Value Added in the total Value Added.

 

Coefficients/weights used for every individual product defined under the Monthly NIP BiH 2024 are updated on a 5-year basis.  Weighting coefficients are calculated based on the product’s unit value resulting from the PRODCOM BiH 2021 results and estimates of value added which is obtained from the SBS survey for 2015 on the 3-digit level of KD BiH 2010.  

Weights for activities from the 3-digit level of KD BiH 2010 upwards are calculated from the gross value added at factor costs from the SBS survey which is corrected by the Industrial Production Physical Volume Indices, in order to obtain an approximation of the previous year’s value added.  These weights for the activity level (activity structure) are updated every year

Monthly statistical survey: Monthly survey on Industrial Production (M KPS IND-1) is the main data source for IPI calculation, which is conducted in a traditional way by sending out paper questionnaires to the field by mail. The survey covers approximately 90% of the total Value Added of the industry on 3-digit levels of NACE Rev.2 (KD BiH 2010). 

The Industrial Production Index in BiH (IPI) is disseminated monthly.

Data collection has been done in a monthly frequency. Reporting units have a deadline for data delivery 15th in the month for the previous (reference) month. Eventually, two more days are available for re-calling of reporting units that didn’t deliver the data in order to get the data from all surveyed reporting units. The deadline for data publishing is T+25 days (for the level of BiH) for the Preliminary results. Preliminary results shall become final on the date of publication of the press release for the next month.

Considering that the IPI results for BiH aare published in accordance with the EBS Regulation 2019/2152, the results are comparable with those of other countries (EU primarily) that apply these regulations, methodology, and relevant classifications.

The industrial production index for BiH has been calculated and published since January 2006 in a monthly periodicity by using the NACE Rev.2 classification at the Total industry level, section level, division level as well as at MIGs level. In 2013 all IPI series that were calculated by using NACE Rev.1.1 are backcasted on NACE Rev.2 by using the macro approach (on a macro level) as well as rebased from 2005=100 to 2010=100, and since the beginning of 2018, the base year was updated from 2010 = 100 to 2015 = 100, in order to ensure comparability. Current base year is 2021 (2021=100).