SARAJEVO (Bosnia and Herzegovina), January 24 (SeeNews) – Bosnia's directorate for economic planning, DEP, said on Tuesday it sees the country's GDP growth speeding up to a real 3.4% in 2017 from a projected 3.1% last year.
Bosnia's 2017 GDP will be boosted by stronger regional growth and the conclusion of a three-year loan agreement with the International Monetary Fund, DEP said in a document published on its website.
Accelerating growth in the euro zone from 1.6% last year to 1.8% this year is expected to strengthen Bosnian exports to a real 5.3% in 2017 and provide an impetus to private investments and employment, DEP noted.
Additionally, an improved business environment and the positive message the IMF deal sends to investors should encourage the growth of private investments, which is seen at a real 7.9%. As investments strengthen employment will rise, thus instigating stronger private consumption.
Bosnia is expected to turn to an inflation of 0.5% in 2017 from a deflation of -1.0% last year, driven by the above mentioned factors, the directorate also said.
However, imports too are seen rising, which could lead to a real 3.9% increase in the foreign trade deficit.
Bosnia's economy is expected to keep growing to 3.8% and 4.0% in 2018 and 2019, respectively.
In 2015, Bosnia's GDP expanded by a real 3.0%.