The latest data from the World Bank shows that the countries in the Western Balkans can expect better days, at least regarding the economy.
Leading economist of the World Bank Željko Bogetić said a month before the organization of economic perspectives in Southeastern European countries said: I hope that 2013 will present a turning point. The last double recession lasted for several years, and this is the year of economic growth in the Western Balkans. Now the challenge is to sustain this dynamic in terms of the severe environment and protracted recession in the Eurozone”.
The investment environment is a particularly big problem in BiH. The year was particularly difficult due to factors in ‘disposable nature”, such as the harsh winter and dry summer, which hit agriculture and the energy sector in countries in this region. “BiH economy was significantly affected last year, especially agriculture. This year, it should be better, but this recovery is very slow. Thus, we expect positive growth, but the tempo will be slow’’, said Bogetić.
The statement that the BiH budget has for some time now relied on IMF loans and that the country may be threatened with a debt crisis is similar to some Eurozone countries.
In addition to this problem, Bogetić warns of another challenge for the BIH government: I would stress that the investment climate in BiH is a big problem. World Bank indicators show that BiH is at the end of the Western Balkan countries when it comes to quality of business environment. Problems are huge, but this also means that with decisive progress success can be achieved”.
He recommends that 2013 should be seen as a ‘year for opportunities’ for economic reform, especially when it comes to fiscal adjustment and investment climate.
(Source: Deutsche Welle)