Bosnia and Herzegovina: Political breakthrough in times of economic stagnation
(by Josef Pöschl)
in: New Divide(s) in Europe?, wiiw Current Analyses and Forecasts No. 9, March 2012, pp. 104-106
Bosnia and Herzegovina, SEE
The economy of Bosnia and Herzegovina will hardly grow substantially or may even shrink slightly in 2012. For the time being, there is nothing that would support expectations of a strong GDP decline. For the period after 2012 we can count with growth resumption, should external conditions allow for that. The main impetus needs to come from outside as a major home-made demand push is unlikely to happen. Prices will remain relatively stable, and no strong medium-term improvement on the labour market can be expected.