UniCredit affirms Bosnia's 2024 GDP growth f'cast at 2.5%

Economic growth in 2024 is expected to be driven by a recovery in private consumption, with a contribution from public spending and funding from international financial institutions, UniCredit said in its CEE Quarterly report published at the end of last month.

In 2025, Bosnia's economic growth should accelerate to 3%, as private consumption recovers further, investment increases and net external demand improves, UniCredit said.

Average consumer price inflation is estimated at 2.4% in 2024 and then should accelerate to 2.6% in 2025 due to recovery in wages and a rise in domestic demand.

Recent compliance with conditions set by the European Commission and the opening of EU accession negotiations in March indicate a positive shift, likely improving business and political sentiment, with promising projects emerging in transport and renewable energy infrastructure, the bank said.

However, Bosnia's outlook faces risks from volatile domestic politics, especially in the Serb Republic, which can obstruct common objectives like EU integration. External risks stem mainly from demand fluctuations in key trading partners, impacting the country's economy.