A new wave of price hikes is expected in BiH – Sarajevo Times

The total industrial production of Bosnia and Herzegovina (BiH)in December of last year increased by 2% compared to November and is higher by 7.2% compared to December 2020.

bad year

According to the Statistics Agency of Bosnia and Herzegovina, growth has been Brandin the production of capital goods, energy, consumer goodsas good as other branches, while the annual decline of 9% was only recorded in the mining and quarrying segment.

The growth percentages are just the result of comparing the bad years with the worst, economists agree.

Analyst Igor Gavran says the growth is minimal and insufficient to offset losses due to the pandemic and the shutdown period in many sectors.

The economy was in a bad state even before the pandemic, so we need much higher growth rates to be able to talk about a sustainable recovery and real progress. We are still far from it. And where progress has been made, it has little or no impact on the standard of living of citizens, because it does not guarantee income growth, and in the meantime, inflation and the price chain have devalued the incomes of those who are lucky enough to have a permanent job and a stable incomeGavran declared.

Workforce

Teacher. Dr. Amila Pilav-Velivsprofessor at the faculty of economics in Sarajevo, saidentifier that in addition to global disruptions, such as bottlenecks in supply chains, a growing mismatch between labor supply and demand, and the global rise in energy prices, the weakened BiH economy will be collegeand an additional inflationary blow.

It is expected that the latest increase in electricity prices will lead to an increase in economic costs of up to 20%, which will lead to a new wave of price increases for citizens. Although all players in the electricity system declaratively emphasize that It will not arrivehigher costs for businesses mean higher prices for their end productsto added Pilav-Velivs.

Fire the employees

Pilav-Velivs sees the negative impact of rising electricity prices on the healthiest part of BiH as a long-term challenge. economic – the production lines in the most important sectors, their volume of production, but also the employees of these sectors.

At the end, teacher. Amila Pilav-Velic underline : It is expected that even the largest companies will be forced to lay off employees. So, same Although the Federation of BiH (FBiH)2021-2027 development strategy for the metallurgy sector, and in particular for specialized industry, projects significant growth, positioning them as industries of strategic importance, it seems that the new inflation cut will have the opposite effect.”

E.Dz.

Source: Avaz

About Eleanor Blackburn

Check Also

Petrol dd: With the official opening of the Ljubač wind farm, Groupe Pétrole consolidates its role as a key player in the energy transition

Investments in the production of electricity from renewable energies are a tangible contribution of the …