Economic Rate of BiH can be expected at Three Percent on Annual Basis

According to the projections of the Directorate for Economic Planning (DEP), in the period 2023 – 2026 economic growth can be expected in Bosnia and Herzegovina with an average rate of about three percent on an annual basis. The main lever of this growth should be domestic demand through an increase in private consumption and, to a lesser extent, investments.

DEP estimates that the average rate of economic growth at the annual level in 2024 could be 2.7 percent, in 2025 three percent and in 2026 3.3 percent

In the period 2023 – 2026, both in BiH and in the world, a gradual stabilization of economic conditions is expected, which will be reflected in the movement of the volume of production, employment and exports. Movements within industrial production in Bosnia and Herzegovina will, in addition to economic trends in the environment, also depend on the implementation of reform measures to improve the business environment. Under the condition of realizing external and internal assumptions, DEP’s projection is that in the period 2023 – 2026, BiH could achieve average annual growth rates of the physical volume of industrial production of 2.2 to 4.8 percent.

In general, with a more favorable business climate, in the period 2024 – 2026, the number of employees is expected to increase by about 1.7 percent, with an increase in net wages from 3.2 percent to 3.9 percent.

Taking into account the movement of energy and food prices on the world market and inflation projections in the EU and stable utility prices in BiH, DEP estimates that inflation in BiH could amount to 3.1 percent in 2024 and 2.2 percent in 2025. and 1.9 percent in 2026.

Perspectives for the period 2023-2026. year, a document that provides a preliminary overview of the forecast of the most significant economic movements in BiH, the Directorate for Economic Planning of BiH prepared based on the analysis of the movement of economic trends in BiH, taking into account international factors that affect the economic development of BiH.

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