The annual growth rate of potential gross domestic product (GDP) in Bosnia and Herzegovina this year is 3.6 percent, according to the Central Bank of Bosnia and Herzegovina.
“At this rate of potential GDP growth and our projection of real GDP growth, the GDP gap is slightly negative and is minus 0.1 percent below the projected real GDP,” the Central Bank said.
The labor factor, they added, is already recording a declining contribution due to demographic changes and the challenges that BiH is facing on the labor market.
“Consequently, in the current circumstances, in the long term, we expect a slight slowdown in potential GDP growth,” the CBBH pointed out.
The currently estimated growth rate of potential GDP, they added, is not sufficient for long-term sustainable growth.
The Central Bank of BiH notes that structural reforms in the labor market, including those that encourage greater engagement of the inactive working-age population, combined with measures to increase productivity, have significant potential for raising long-term potential GDP growth in our country.
