text: waht is the state of bosnia's economy?   bosnia faces the dual problem of rebuilding a war-torn country and introducing market reforms to its former centrally planned economy. one legacy of that era is greatly overstaffed industry. under former dictator josip broz tito, military industries were promoted in the republic resulting in the development of a large share of yugoslavia's defense plants and fewer commercially viable firms.  for the most part in bosnia's history, agriculture has been based on privately-owned small and inefficient farms, and food has traditionally been a net import for the republic.  when it was a part of yugoslavia, bosnia and herzegovina financed many large construction projects throughout that country. the highway "bratstvo i jedinstvo", a pan-yugoslavian project, which linked ljubljana (slovenia) - zagreb (croatia) - belgrade (serbia) - skopje (macedonia), was financed by b and h, despite the lack of direct benefit to that region. the funneling of capital to that project resulted in an increase in unemployment and a decrease in production in the region.[citation needed]  the war caused a dramatic change in the bosnian economy. production fell to 6%, gdp fell 75% and the destruction of physical infrastructure created massive economic trauma. while much of the production capacity has been restored, the bosnian economy still faces considerable difficulties.  figures show gdp and per capita income increased 10% from 2003 to 2004. this and bosnia's shrinking national debt are positive trends, but high unemployment and a large trade deficit remain cause for concern.  the national currency is the bosnia and herzegovina convertible mark (bam), which is fixed to the euro (€1 = km1.95583) and is therefore very stable. the inflation rate was 1.4% as of 2005.    legal tender coins from bosnia-herzegovinayearly inflation is the lowest in comparison to other countries that were formerly part of yugoslavia. the inflation rate was 1.9% in 2004,[6] and international debt was $3.1 billion (2005 est); making it the smallest amount of debt owed from the former yugoslav countries (serbia and montenegro's international debt is $15.43 billion (2005 est), while croatia is at $29.28 billion (2005 est)). real gdp growth rate was 5% for 2004 according to the bosnian central bank of bih and statistical office of bosnia and herzegovina.  bosnia and herzegovina has one of the best income equality rankings in the world, ranked eighth among the world's 193 nations.