November 24 (SeeNews) - Bosnia and Herzegovina should increase support for the private sector and the vulnerable groups during the global crisis, as the economy continues to grow in 2022, the European Bank for Reconstruction and Development (EBRD) said.
The country also lacks a plan for green transition and needs to make progress with reforms of state-owned enterprises, the EBRD said in its Transition Report 2022-2023 on Tuesday.
"The legislative framework to stimulate investment in renewables is gradually advancing, although the decarbonisation vision remains undeveloped," the bank said.
The country is enjoying a better-than-expected post-pandemic recovery, driven by strong external demand and recovering domestic consumption, although investment remains weak, the EBRD added.
The lender expects Bosnia's economic growth to slow down to 2.3% in 2023 from 3% projected for 2022, mainly due to the economic impact of the war in Ukraine.
Inflation is expected to average around 10.5% in 2022, significantly higher compared with 2% in 2021.