BiH Manages to Avoid Recession in First Three Months

The economy of Bosnia and Herzegovina has managed to avoid recession in the first three months of the current year, and, according to the preliminary estimates, the gross domestic product (GDP) in the first trimester even grew by more than the expected 2%, says the analysis done by Raiffeisen Bank, as reported by Avaz.

– The measures against the spreading of coronavirus affected the production, the exports, the tourism and the retail sector. Despite that, the results in April should be the lowest point of the economic drop, as the May numbers have shown signs of slight improvement – it was pointed out.

However, the analysts of the Austrian bank still project that BiH will have a GDP drop of 5.2% by the end of the year, primarily because of the negative impact on private consumption and investments,.

– Public spending should increase due to the fiscal spending and the counter-measures which are expected to come into effect in the second half of 2020. Still, the new growth of the number of the infected and the reintroduction of the measures are considerable risks to the recovery of the economy of BiH. However, for now, a recovery quicker than projected in the Euro Area and the EU can be expected, which will result in a quicker recovery of the production and the exports in BiH – it is emphasized.

Raiffeisen Bank

economic recovery

recession in BiH

GDP in BiH