Macroeconomic expert Faruk Hadzic, as well as economist and former diplomat Drasko Acimovic were guests of one TV show, where they talked about the numerous economic challenges that Bosnia and Herzegovina (BiH) is facing.
Now there is inflation, followed by stagnation. Stagflation, recession and depression are also announced?
Hadzic: We see that now there is a inflation because there is a general rise in prices.
How much is 100 BAM worth today compared to last year?
Hadzic: At least 10 percent less. We further enter a phase of stagnation. That means a slowdown in the economy. I sincerely hope that there will be no stagflation, it is very difficult to fight such an economic phenomenon. The recession will probably be next year. For now, there is no talk of depression, it is a long-term decline in economic activity.
Mr. Acimovic, head of BiH diplomacy Turkovic is in Qatar while the fight for BiH’s candidate status in the European Union (EU) is being waged. What does it mean that Slovenia, Croatia, Austria are in favor of BiH?
Acimovic: It is very simple, the biggest trade partners of BiH are those countries. Because of their interest, they want to see BiH in the Union. There is no love, it is pure pragmatics. Ukraine has passed all the laws that the EU asked of them, similar laws that were not adopted by our rulers.
As for the ministers and the Council of Ministers, a number of lawsuits have been filed against them. They have done so much harm to all citizens that the courts need to speak here.
An increase in interest rates is announced, what will that mean in concrete terms, e.g. if someone has a 500 BAM installment loan?
Hadzic: It depends, if it is a variable interest rate, then the installment will increase. There will be an increase in interest rates – if not by the end of the year, then early next.
Is there any benefit from saving?
Hadzic: The worst thing is to save now, we have nowhere to invest. Eg. real estate prices have jumped significantly as many who have had savings have invested in real estate.
Maybe buy gold?
Hadzic: It is better to buy gold than to keep money in your pocket.
Bakir Izetbegovic called for the return of our money and gold from foreign banks to domestic ones?
Acimovic: That doesn’t make any sense, first of all, there are no conditions for keeping that money and gold. I don’t even see that money is being endangered. I think that’s a little frivolous, N1 writes.