BUSINESS

Optimistic Report: Domestic Economy is in the Process of Recovering

projectAfter a difficult post-recession period that was marked by economic stagnation, the economic and financial parameters in 2015 are finally recording an increase.

Economic growth of 3.1 % is predicted for the year of 2016. The report of the Directorate for Economic Planning of B&H is stating the growth of average salaries by 1.9 %, the number of employees by 1.5 % and domestic demand by 2.9 %.

Economic experts are optimistic in the predictions of further economic developments.

Executive Director of the Association of economists SWOT Sasa Grabovac said that most of the credit for the economic growth of our country goes to the private companies, which adapted to the business environment, and they are now producing, exporting and hiring.

Besides private companies, the Government has undertaken concrete steps in reforms. The Labor Law has been adopted in the FB&H, while process of company registration was facilitated in Republika Srpska. Economic trends were strongly influenced by the recovery of the Eurozone, as well as the economy in Croatia and Serbia, which are our most important foreign trading partners,” said Grabovac.

Economic analyst Zlatko Hurtic states that the optimism of domestic investors and foreign donors has increased with the adoption of the Reform Agenda as well as the recent announcement of the application for membership in the European Union.

Government of FB&H recently adopted the Plan for public investment which will be increased by 7 times, by investing in road infrastructure. Hydro power plants Vranduk will be constructed next year as well. Increased public investment is the result of the opening of international creditors such as the EBRD and the World Bank, due to the adopted Reform Agenda,” said Hurtic noting that this will lead to growth of the employment as well as overall economic growth.

(Source: faktor.ba)

Leave a Comment