November 3 (SeeNews) - The central bank of Bosnia and Herzegovina expects the country's real gross domestic product (GDP) to increase by 5.8% in 2021, revising its May projection by 2.4 percentage points upwards, it said on Wednesday.
The estimated GDP growth for 2022 has also been upgraded - to 3.9% from 3.4% projected in May, Bosnia's central bank said in a statement.
Bosnia's economic upswing in 2021 is driven by stronger-than-expected foreign demand, tourism revenue growth, as well as the recovery of indicators such as industrial production and exports of goods, the central bank said.
The central bank expects the country to swing to 1.7% inflation in 2021 from 1% deflation last year. Inflationary pressures are expected to rise further in 2022, with inflation reaching 2.1% in Bosnia as a result of inflation shocks in Europe.