WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The economy has bounced back since restrictions were eased in Q2 2021, growing by 11.6% (and thus more than recouping last year’s decline). Mass vaccination has started, but the public’s interest in getting inoculated has been far lower than expected; this poses an additional risk to the health sector, as the fourth wave of the pandemic is already upon the country. The introduction of a law proscribing genocide denial has led to fresh political tensions in the country and disruption to the work of government institutions by politicians from Republika Srpska; this could have economic repercussions.