Slowing down of inflation, slight increase in credit rating and modest economic growth are some of the macroeconomic indicators and trends of economic developments in BiH that marked the year 2023.
In the autumn round of medium-term macroeconomic projections, the Central Bank of Bosnia and Herzegovina kept the projection of economic activity in 2023 unchanged, at the level of 1.6 percent, while the inflation projection was corrected downwards, to the level of 6.3 percent. In the next two years, they expect the recovery of economic activity and further weakening of inflationary pressures.
In the past three years, the world and domestic economy have been faced with numerous challenges, from the pandemic to the two major conflicts that are happening and causing disruptions in the world market. Such events reflect on fuel prices and supply chains, which also affects the economy of BiH. Among the priority requests, when it comes to the circulation of goods and exports, the business community through the Foreign Trade Chamber of BiH (VTKBH) highlighted the introduction of additional BIPs (border crossings with full inspection control), and the extension of the stay of drivers in the Schengen zone for more than 90 days.
In addition to disruptions on the world market, BH businessmen are also faced with numerous fiscal and parafiscal charges, complicated administrative procedures, and the problem of a lack of professional labor on the labor market. According to some estimates, Bosnia and Herzegovina currently lacks around 30,000 workers of various occupations, and employers are increasingly replacing the need for labor by importing workers from abroad.
For the Association of Employers in the Federation of Bosnia and Herzegovina, the priority in 2024 should be the adoption of fiscal laws that will relieve the cost of labor, and, among other things, they emphasized the need to harmonize education with the needs of the labor market.
Economists agree that after the inflationary shocks and the increase in energy prices, a lesson should have been learned that more than ever it is necessary to invest in productivity and the acquisition of new technologies.
What encourages him is the fact that many companies achieve positive financial results despite global and local challenges. So recently the best BH. presented the first “Polet” awards to the exporters of VTKBiH, and at the manifestation of the Agency for the Promotion of Foreign Investments in BiH (FIPA) “Choice of the most significant investor in BiH” for the year 2023, 12 companies received a plaque for the achieved results in business.
When it comes to this year’s fair events and conferences of investors and business people in Bosnia and Herzegovina, we can single out the International Economic Fair – Mostar 2023, where about 800 exhibitors from 30 countries presented themselves, from which exhibitors and high-ranking representatives from the countries of the region sent messages of peace, stability and mutual cooperation, and the Sarajevo Business Forum (SBF), whose focus this year was sustainable development and regional cooperation.
About 300 exhibitors from BiH, the region and the world gathered in August for the jubilee 50th international fair of agriculture and food industry, better known as the Plum Fair in Gradačac, where it was emphasized that domestic food production in BiH is imperative, while at the International Economy Fair in Tešnju’s central theme was dedicated to renewable energy sources and energy efficiency.
Companies from Bosnia and Herzegovina have also recorded successful presentations at fairs abroad, where their appearance at IMM 2023 – Spring Edition, the most important promotional event for Bosnia and Herzegovina, can be singled out. exporters of furniture to Germany and the EU, organized by VTKBiH, while the FBiH Chamber of Commerce organized the participation of BiH in December. company at the international supplier fair “Global automotive components and suppliers Expo 2023 (GACS 2023)” which brought together the European and global automotive industry, Fena news agency writes.
