In Bosnia and Herzegovina (BiH), from 2023 to 2025, the trend of positive economic growth can be expected to continue at average rates of around 3.2 percent on an annual basis – 3.1 percent in 2023, three percent in 2024 and 3.4 percent in 2025.
These rates of economic growth in BiH can be expected under the assumption of stabilization of the external environment and internal dynamics, it was stated in the information of the BiH Directorate for Economic Planning (DEP) on the perspectives for the next three years.
During this period, domestic demand through private consumption and investments is expected to be the main support of economic growth, while, on the other hand, during the observed period, stagnation of public consumption is expected, which will result in a decrease in its participation in the structure of the gross domestic product, i.e. its contribution to economic growth of BiH.
In the next three years, more significant economic progress is expected in BiH, within which developments in industrial production should play a central role.
In addition to the expected favorable external conditions, in this medium-term time frame, a more significant impact of internal dynamics is expected in the function of strengthening industrial production in BiH.
The DEP states that the improvement of the business environment should result in an increase in investments (domestic and foreign), greater utilization of existing and the launch of new capacities, an increase in the number of employees and a strengthening of the competitive position of producers from BiH, both on the domestic and foreign markets.
The growth in the volume of investments and trade should have a positive effect on the number of employed persons, and with better business opportunities in the field of industry, commerce, but also in certain service activities, the conditions for the growth of the number of employed persons would be created.
As a result, in the upcoming year the total number of employed persons in BiH could be increased by about 1.5 percent compared to the previous year, while the greater volume of business activity should be reflected in salaries, so that the average net salary in 2023 could be nominally increased by about 3.1 percent.
With a favorable business climate in BiH, an increase in the number of employed persons is expected in the period 2024-2025 from 1.6 to 1.7 percent compared to the previous year, with a simultaneous decrease in the number of unemployed persons, but also a continuation of the increase in net wages from 3.2 to 3.3 percent.
Projections of the World Bank indicate that the food price index could be lower by around one percent, so based on the mentioned information, moderate price growth can be expected in BiH in 2024-2025 from 1.5 to 1.7 percent, Biznis Info writes.
E.Dz.
