wiiw Forecast Reports
BOSNIA AND HERZEGOVINA: Economy stagnating, as political tensions come to the fore
in: Beneath the Veneer of Calm
wiiw Forecast Report No. Autumn 2023, October 2023 , pp. 56-59
The year started with rather slow economic growth, as a result of a decline in household consumption and net exports. Inflation has been falling, despite the inability of the central bank to influence interest rates under the currency board arrangement. Political tensions are again on the rise, as one part of the country, Republika Srpska, has ceased to heed the decisions of the international official who oversees peace in the country. On a positive note, the country’s new government has been making some progress in meeting the conditions set by the EU for progress towards EU accession, and the country’s S&P sovereign rating was upgraded in August 2023 in recognition of its economic resilience.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Bosnia and Herzegovina