According to the data of the Agency for Statistics, the prices of products and services used for personal consumption in Bosnia and Herzegovina (BiH) increased by 14.4 percent in May compared to May last year, which shows that inflation has reached the highest level in history.
Strange situation
Our country has already stepped deep into inflation, and it is usually followed by recession. Finance professor Sanel Halilbegovic talked about this topic.
”Large world economies like the United States (U.S.) are technically already in recession. The recession in BiH, as in a country that is completely irrelevant on the world stage, is not created because of Bosnia, but because of the so-called spillover effect, where the recession happens somewhere else, and then “spills over” to these countries, such as BiH, which does nothave any impact, but literally has to eat what others provide,” explains prof. Halilbegovic.
As he added, current events are for the books…
”When the country enters a recession, it is because of weak economic developments. However, the flow of the capital markets does not show that, they are growing, while, on the other hand, according to the mathematical calculation, you have a recession. So it’s a very strange situation,” noted prof. Halilbegovic.
The reason is that there is still a lot of money in circulation, relatively cheap money, which does not allow the recession to flare up. When it comes to our country, it is ungrateful to give forecasts, he adds.
”I think they don’t even have measures in preparation, in reserve. Because what if a recession were to happen all over the world and BiH entered a recession, what would our government do? Well, it is 99.99 percent certain that they would do nothing. The motto would be “get your bearings,” told prof. Halilbegovic.
Head in the sand
He emphasizes that every crisis in BiH has a delayed effect and that is like gold.
”Small countries should be reactive enough and fast enough to know how to get the best out of the situation, and not just bury their heads in the sand and wait for the sandstorm to pass,” Prof. Halilbegovic concluded, Avaz writes.
E.Dz.
