wiiw Current Analyses and Forecasts
Bosnia and Herzegovina: The choice between take-off and slow growth
in: Recovery - in Low Gear across Tough Terrain
wiiw Current Analyses and Forecasts No. 7, March 2011 , pp. 91-93
Bosnia and Herzegovina is experiencing a mild upswing: a trend that is confirmed by statistics, but
hardly registered by the general public. Unemployment that was already extremely high prior to the
crisis has increased still further compared to the pre-crisis years. Other segments of society were far
less hard hit (or not at all) by the crisis, especially those employed in the large government sector.
An engine for stronger growth, however, is lacking; it is nowhere to be seen. For the most part, funds
from the EU and IFIs keep investment in infrastructure on track. Exports are increasing thanks to a
growing demand for metals; however, they cover but half of the country’s imports. GDP growth may
gradually increase to 3% by 2013; that is not much for a country ranked as an 'emerging market'.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Bosnia and Herzegovina, SEE