Erste cuts Bosnia's 2024 economic growth f'cast to 1.8%

This year, Bosnia's economic growth is expected to slightly accelerate, with strong domestic retail growth but weak industrial production, and a significant trade deficit due to negative export growth and rising imports, Erste said in a report.

The gross domestic product (GDP) of Bosnia grew by a real 1.6% year-on-year in 2023, following an annual increase of 3.8% in 2022.

In 2025, Erste projects the country's economy to speed up to 3.1% as external demand recovers.

Annual inflation decelerated faster than elsewhere in the region and continues to hover around 2% since the end of 2023, Erste said. The banking group expects Bosnia's average annual inflation to be 2.6% in 2024 and 3.2% in 2025 in line with projected acceleration of economic activity.

Consumer prices in Bosnia rose by 2% on the year in April, matching the annual increase seen in March, according to the latest data by the statistical office.