… but this will require more deeper reforms to increase productivity and attract investment, the World Bank (WB) was forecast in the report published on Monday.
Real growth in BiH in 2024 was improved, reaching a rate of 2.6 percent, after 1.9 percent in 2023, which reflected two mutually opposing factors.
Domestic demand is, due to greater consumption and larger investment, increased by 4.4 percent.
Also, net exports decreased by 23 percent due to the deterioration of trade conditions and increasing imports associated with investments. The slowdown in inflation has increased the real available income and private consumption.
Inflation is in 2024. Slow down 1.7 percent, and a year was previously recorded 6.1 percent.
The prices of most goods and services have grown faster than food prices, which is why it is in 2024. Basic inflation (2.8 percent) grew food price inflation (2.1 percent).
The slowdown in inflation has resulted in a decline in transport prices and slowing down the growth of housing prices, water supply, electricity and gas.
It is predicted that the economic growth of Bosnia and Herzegovina in 2025 will increase to 2.7 percent, and in 2026. to 3.1 percent, with a higher real income to encourage private consumption.
Inflation increases, caused by mainly increasing food prices and services, which is the consequence of global economic uncertainty.
“Bosnia and Herzegovina is made up of modest economic growth, and the encouragement of the growth-based growth model, BiH needs to accelerate. At the same time, political stability will be crucial for the long-term support to the investor,” he said The head of the World Bank Office for BiH and Montenegro Christopher Sheldon.
The highest growth rate of the World Bank provides for Kosovo and 3.8 percent. In the second place, Serbia is to which the WB analysts predict growth of 3.5 percent, followed by Albania with 3.2 percent.
For BiH, growth of 2.7 percent is planned, and for northern Macedonia 2.6 percent.
The report indicates that, in the periods of uncertainty, the diversification of the growth sources and restoration of the structural reforms of the most effective strategy for preserving economic resistance.
Among the key measures are the removal of barriers to labor market, including the restrictions affecting women, then deepening regional economic integration, improving the management standards and increasing productivity and providing long-term growth.
They also state that faster reforms in the European Union process in the Western Balkans, such as associations in the euros in euros (SEPA) due to the implementation of cross-border trade, could further improve the commission of businesses and encourage new jobs.
The World Bank in the Report also warns the temperature and the phenomenon of extreme weather conditions, with the transition to the “green” economy, heating the sectoral employment forms in this region, which requires significant adaptation of the labor force.
The six economies of the Western Balkans should set the reforms of their social protection systems and the employment services to overcome time disasters such as floods, drought and forest fires, and to be ready for new employment opportunities adopted by green transition.
Strengthening the system for protection of work income in response to employment strikes, and more flexibility of the social protection system would help prevent the impoverishment of individuals.
In addition, the retraining of workers for “green” workplaces would contribute to respond to changed skills demand, thus promoting productivity and economic growth, stands in the World Bank report.
(Vijesti.ba / Fena)
