wiiw Forecast Reports

BOSNIA AND HERZEGOVINA: Local political tensions leave the country in limbo

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Selena Duraković

in: Overshadowed by War and Sanctions
wiiw Forecast Report No. Spring 2022, April 2022 , pp. 45-48

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The economy grew more strongly than expected in 2021, due to a significant rise in industrial production, private consumption and exports. However, growth in 2022 is expected to be much weaker, given the threats of high inflation brought about by the war in Ukraine and the rise in local political tensions. The entity governments have failed to reach agreement on decisions that are important to the country’s progress, and this is undermining its prospects for European integration, while also rendering it less attractive to both foreign investors and its own citizens, who are leaving the country in droves.

 

Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Bosnia and Herzegovina


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