SARAJEVO (Bosnia and Herzegovina), May 14 (SeeNews) – The economy of Bosnia and Herzegovina is expected to expand by 1.8% and 2.0% in 2014 and 2015, respectively, the European Bank for Reconstruction and Development (EBRD) said on Wednesday.
The 2014 economic growth forecast for Bosnia and Herzegovina was unchanged from previous projection in January, data of the EBRD Regional Economic Prospects Report indicated.
Bosnia's economic growth is expected to remain around 2.0% this year and next mainly on the back of some big infrastructure investments and a further improvement in exports, but downside risks, both internal and external, remain considerable, the EBRD said.
In 2013, Bosnia and Herzegovina’s economy emerged from recession with mild gross domestic product (GDP) growth of 2.1%, mainly due to some improvements in exports, the report said.
“However, gross fixed capital formation in the last two years has been almost non-existent, and remittances are far behind their pre-crisis level. Moreover, an unfavourable political stalemate has held back necessary structural reforms.”