B&H Achieved Modest Economic Growth

In the first three quarters of last year, B&H achieved a modest economic growth, primarily due to the reduction of the trade deficit by 16 percent, said in a statement of the B&H Directorate for Economic Planning.

Reduction of the deficit was due to the nominal export growth of 5,8 percent and a fall in imports by four percent.

Notwithstanding the unfavorable trends in export markets, export growth is largely accomplished thanks to a strong increase in production and exports of electricity due to the favorable hydrological situation in hydro power plants.

Slight decrease in domestic demand, due to the negative trend of private and public consumption and a fall in private investments, led to a drop in imports.

The poor labor market situation in B&H and the region significantly jeopardized the disposable income of the population, while a decline in budget revenue last year limited expenditures, including public spending.

On the other hand, the strong growth of public works was financed to a large measure on favorable borrowing from international lenders.

(Source: klix.ba)