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Bosnia and Herzegovina Country Report - June, 2016

  • July 2016
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 33 pages

Summary

Table of Contents

This report covers the main macroeconomic releases from June 6 until July 5, 2016 as well as the financial and political events that took place in Bosnia during this period.

The World Bank has raised its forecast for Bosnia & Herzegovina's economic growth in 2016 to 2.6%, though this is still below the estimated 3.2% in 2015, according to the June's edition of the bank's Global Economic Prospects. On the other hand, , according to a 2017-2019 economic prospects paper, adopted by the government, Bosnia's economy is expected to grow by 3.5% in 2017 from projected 3.1% this year.

The lower chamber of Bosnia & Herzegovina's parliament, the House of Representatives, approved at an extraordinary session on June 16 changes to the public broadcasting law that should save the state-level public broadcaster BHRT from shutting down at the end of the month.

Bosnia & Herzegovina's state-level statistics office released on June 30 the long delayed final results of the 2013 census, despite strong objections from Republika Srpska, one of the entities making up the country. The census was the first conducted since the end of the Bosnian war in 1995.

Bosnia & Herzegovina's tripartite presidency has delayed voting on the adjustment of its Stabilisation and Association agreement with the European Union as the country's smaller entity, Republika Srpska, has rejected it.

If Bosnia & Herzegovina does not adopt adjustments of its Stabilisation and Association Agreement (SAA) and fails to approve a working coordination mechanism, the foreign affairs council of the European Union will not accept its membership application, according to the of the EU delegation to Bosnia, Lars-Gunnar Wigemark.



Key points:

oCPI deflation eased to 1.5% y/y in May

oThe working-day adjusted industrial production increased 3.9% y/y in May

oThe foreign trade gap narrowed 4.9% y/y to EUR1.3bn in the first five months of 2016

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