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Bosnia and Herzegovina Country Report Q1 2017 - Q1, 2017

Bosnia and Herzegovina Country Report Q1 2017 - Q1, 2017

  • May 2017
  • 37 pages
  • ID: 4883656

Summary

Table of Contents

he International Monetary Fund (IMF) has put its loan agreement with Bosnia & Herzegovina on hold as the country has failed to implement reforms it had agreed with the fund.

If the country wants to get the second tranche from the IMF, it must meet all its requirements. So far, political disagreements are delaying the end of this potentially serious financial crisis.

The World Bank has raised slightly its forecast for Bosnia & Herzegovina's economic growth in 2017 to 3.2% in its latest Global Economic Prospects.

According to the World Bank's report, in the Western Balkans economic growth is expected to accelerate to 3.2% in 2017 from 2.7 in 2016.

Consumer prices increased by 1.4% y/y in March, accelerating from a 1.2% y/y rise in February.

In m/m terms, the CPI inched up 0.1% in March, after rising 0.3% m/m in February. In the first quarter of 2017, consumer prices increased by 1.1% y/y.

An appeal against the ICJ's 2007 judgment in a genocide case against Serbia rocked Bosnia as politicians were not united on it.

The appeal was dismissed by the court and the Bosnian prosecution eventually launched an investigation into the legitimacy of Sakib Softic - the lawyer who filed the appeal.

The US department of the treasury's Office of Foreign Assets Control (OFAC) imposed sanctions against Milorad Dodik.

Dodik ignored several constitutional court decisions concerning the celebration of Republic Day, angering the international community and significantly raising tensions within Bosnia. Staging the biggest ever celebration of the Republic Day on January 9 despite the court's ban was the latest of the violations.

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