Sarajevo, also Sarayevo, city and capital, Bosnia and Herzegovina (commonly referred to as Bosnia), on the Miljacka River, in the east central part of the country. Before civil war broke out in 1992, the city was an important cultural and commercial center with a multiethnic population of Muslims, Bosnian Serbs, and Bosnian Croats.
Sarajevo's principal manufactures included carpets, silks, fabrics, jewelry, tobacco goods, and machine tools. The war had a disastrous impact on the city's economy. Much of Sarajevo's infrastructure, industry, and housing were damaged or destroyed, and production in all major industries declined sharply. Unemployment climbed to more than 100,000 people, or about half the workforce.
