The Russian invasion of Ukraine caused enormous increases in the prices of basic foodstuffs. And that is well known to the citizens of Bosnia and Herzegovina (BiH) because they are greeted with new – higher prices almost every day in stores. However, in recent months, numerous factors have united against the economies of weak countries such as BiH.
Although covid left severe consequences on the economy of our country, there was no time for recovery. The war in Ukraine followed, which also caused an energy crisis. And inflation followed as the last link in the series. And at a record level never seen before.
Despite the fact that we have seen a slight drop in prices in recent days, experts warn that this phenomenon will not last long, and that a difficult and uncertain autumn awaits us.
Standard of living for many BiH citizens has never been worse. Filling the consumer basket and affording the basic necessities of life has long been an abstract term for a large number of citizens. Experts do not have optimistic forecasts, on the contrary, they believe that a difficult economic situation awaits us with a new increase in interest rates and new economic slowdowns. However, that’s not all. Thanks to the influence of strong European economies on BiH, we are also threatened with recession.
“A better time will not come soon, according to some dark scenarios, we can also experience a recession. The situation will be much clearer at the end of this year, when it will be seen how much the energy crisis will affect the countries of the Eurozone, because it has a direct impact on economic activity in BiH“, emphasizes economic expert Dr. Sanel Halilbegovic.
The best indicator of the impact of Russian aggression on the economic picture of our country is statistical data.
According to the latest data from the Agency for Statistics, due to the war in Ukraine, food prices are higher by as much as 30 percent. However, the global economic crisis is not the only culprit. The biggest cause of instability is import dependence, economic expert Igor Gavran pointed out.
“If we had most of the products from our own sources, then we would be immune to all shocks. Electricity is the best example. Although we had a certain increase in prices for some subjects, the price of electricity in BiH is drastically lower than in the rest of Europe,” notes Gavran.
And that is one of the rare examples we can boast of. Our country records the highest increase in food prices compared to its neighbors, as well as some European countries. For example, oil and chicken are significantly more expensive than in Serbia. The consumer basket in July is more expensive by 30 BAM compared to June. However, due to the continuous rise in prices, it is certain that it will be more and more empty.
