Bosnia and Herzegovina expects economic growth of 3.2%

In Bosnia and Herzegovina (BiH)from 2023 to 2025, the trend of positive economic growth can be expected to continue at average rates of around 3.2% on an annual basis – 3.1% in 2023, 3% in 2024 and 3.4% in 2025.

These rates of economic growth in Bosnia and Herzegovina can be expected assuming a stabilization of the external environment and internal dynamics, it was stated in the information of the BiH Department of Economic Planning (DEP) on the outlook for the next three years.

During this period, domestic demand through private consumption and investment is expected to be the main support for economic growth, while, on the other hand, during the observed period, stagnation in public consumption is expected. , which will result in a reduction in its participation. in the structure of gross domestic product, i.e. its contribution to the economic growth of BiH.

Over the next three years, greater economic progress is expected in BiHin which the evolution of industrial production should play a central role.

In addition to the expected favorable external conditions, in the medium term, a greater impact of internal dynamics is expected depending on the strengthening of industrial production in BiH.

The DEP indicates that the improvement of the business environment should result in an increase in investments (domestic and foreign), a greater use of existing capacities and the launching of new capacities, an increase in the number of employees and a strengthening the competitive position of producers. of Bosnia and Herzegovina, both domestically and abroad.

The growth in the volume of investment and trade should have a positive effect on the number of people employed, and with better business opportunities in the field of industry, commerce, but also in certain service activities, the conditions growth in the number of people employed would be created.

Consequently, in the at the topIn the coming year, the total number of people employed in Bosnia and Herzegovina could increase by around 1.5% compared to the previous year, while the increase in the volume of business activity is expected to be reflected in the salaries, so that the average net salary in 2023 could be nominally increased by around 3.1 percent.

With a favorable business climate in Bosnia and Herzegovina, an increase in the number of employed persons is expected in the period 2024-2025 by 1.6-1.7% compared to the previous year, with a simultaneous decrease in the number of unemployed, but also a further increase in net wages of 3.2 to 3.3 percent.

World Bank projections indicate that the food price index could be around one percent lower, so based on the information mentionedmoderate price growth can be expected in BiH in 2024-2025 of 1.5-1.7%, writes Biznis Info.


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