In the last 15 years, the world has been hit by the economic crisis, pandemic, and now the war in Ukraine. All three are significant factors for the global economy. An economic analyst Faruk Hadzic talked about the current economic situation in the world, but also in our country, and about what potentially awaits us in the world.
He told that, when it comes to the current situation, the profession has warned that there may be negative effects in the upcoming period.
“Bosnia and Herzegovina (BiH) is always most interested in the effects it will have on our economy and state. There will be no direct damage to the foreign trade of BiH and Ukraine because they are not mutually important foreign trade partners. On the other hand, Russia is a significant partner because we import large quantities of natural gas and we thus achieve a deficit in foreign trade with Russia. However, Ukraine is one of the world’s largest producers of cereals, especially wheat and grain, exporting most of it to Africa, the Middle East, and now in the event of supply chain disruptions there will be a shortage and then there will be pressure in these markets to buy wheat, grain in some other countries. This will automatically lead to higher prices and then it will affect the economy of our country. I sincerely hope that there will be no problems in the supply of energy sources, specifically fuel because BiH, unfortunately,does not have stocks of that energy source and that could further affect the new and higher price growth in BiH. “
Further, he pointed out that the International Monetary Fund (IMF) forecast from the fall of last year, when there was no Russian-Ukrainian conflict at all, said that inflation would increase significantly by the end of 2021.
But, now there are new circumstances, which can only further deepen the effects of such a crisis. It all depends on how long the conflict will last. Will there be disruptions in supply chains and how will some other countries react, whether, for example, the Organization of the Petroleum Exporting Countries (OPEC)will increase the production of fuel and thus prevent a drastic rise in prices. We have seen that prices have started to rise again on the world market, so there are these unpredictable conditions. ”
E.Dz.
Source: federalna
