June 9 (SeeNews) - The World Bank said it expects Bosnia and Herzegovina's gross domestic product (GDP) to decrease by 3.2% in 2020, a deeper fall than the contraction of 1.9% predicted in April.
On the other hand, the World Bank kept unchanged its April forecast for economic growth of 3.4% in Bosnia next year, the World Bank said in its June 2020 Global Economic Prospects report published late on Monday.
"In the Western Balkans, activity is expected to shrink by 3.2% in 2020, but to rebound by 4.6% percent in 2021, assuming that consumer and business confidence are restored as the impact of COVID-19 fades, and that political instability remains in check," the World Bank said.
In April, it said that the main external risk for Bosnia are the slow growth in the European Union and political tensions in the region.
Back then, the bank said that investments in Bosnia and the country's exports are expected to increase. However, it also warned Bosnia that its main challenge would be addressing persistent unemployment and minimizing layoffs in the private sector during and after the coronavirus crisis.