Bosnia's GDP to grow 2.6% in 2024 - Raiffeisen Bank BiH

Slightly lower growth than expected and a weaker result in the last quarter of 2023 led to a reduction in the projected growth for 2024 from 3% to 2.6%, Raiffeisen Bank BiH said in a press release on Tuesday.

"In addition, the beginning of 2024 did not bring the long-awaited signs of a revival in external demand, accompanied by a stronger recovery in commodity exports and industrial production," the lender said.

Bosnia's 2024 economic growth will be mainly driven by resilient private consumption and stable investment growth, according to the bank's analysts.

Raiffeisen Bank BiH analysts also forecast 2024 inflation to average 2.7%, considering expected pressures on oil and electricity prices. Bosnia's average annual inflation came in at 6.1% last year.

According to preliminary data by the country's statistical office, the gross domestic product (GDP) of Bosnia and Herzegovina grew by a real 1.6% year-on-year in 2023, following an annual increase of 3.8% in 2022.