Highway 1 is a major highway located in Bosnia and Herzegovina. It runs from the capital city of Sarajevo to the western border of the country, providing a direct route to Croatia. The highway is a vital link for the country, connecting the major cities and towns
Bosnia and Herzegovina has a developing transitional economy. Since its independence movement during the 1990s, the country has sought deeper economic integration within Europe. Their main trading partner is the European Union and neighboring countries in Southeast Europe. Its complex political governance has strained domestic economic and fiscal policy. It runs a structural trade deficit financed by remittances from the Bosnian diaspora, and as such, is heavily dependent on foreign aid. Bosnia and Herzegovina has an emerging tourism sector which has helped diversify a historically strong agricultural sector. It has limited infrastructure, heavy public regulation, as well as a large informal economy.