Bosnia and Herzegovina positively, albeit slowly, advanced since Competitiveness Outlook (CO) 2021, progressing across 11 of the 15 policy dimensions, regressing in three and stagnating in one. Bosnia and Herzegovina showed the strongest score increases in the areas of trade and agriculture policies, with the remaining nine areas advancing marginally. By contrast, the economy is performing below the Western Balkans (WB6) average across all policy dimensions, with few areas, state-owned enterprises (SOE), tax, access to finance and trade policies, nearing the average. Bosnia and Herzegovina is significantly lagging in the areas of digital society, agriculture, education, and tourism policy, scoring below all its Western Balkan neighbours, highlighting the areas requiring substantial improvement for achieving convergence.