Bosnia Economic Outlook
May 12, 2020The economic situation turned dire over the last month as the Covid-19 crisis pummeled activity. Merchandise exports declined over 14% year-on-year in March on flagging demand from key European trading partners, with output in the industrial sector consequently sinking in the same month as manufacturing output recoiled. Exacerbating matters, remittance inflows are expected to ebb significantly in the wake of ongoing crises abroad. In late April, the IMF approved a roughly EUR 333 million emergency loan to help the country meet an urgent balance-of-payments need. Moreover, the government of the Bosniak-Croat FederationÂ scaled up its 2020 budget around 11% to BAM 5.5 billion in mid-April to accommodate higher spending in response to the crisis. Reflecting the economic fallout and an expected deterioration in the countryâ€™s fiscal metrics, S&P Global Ratings downgraded the outlook of its B credit rating to stable from positive on 30 April.
Bosnia and Herzegovina Economic GrowthThe economy will severely contract this year. Domestic demand is set to drop on falling consumer spending and investment, while depressed demand from the Euro area will cripple the external sector. The magnitude of the domestic outbreak and the duration of the Euro area recession will be key determinants in the outlook. FocusEconomics panelists project GDP to contract 5.5% in 2020, which is down 6.4 percentage points from last monthâ€™s forecast, and to grow 3.5% in 2021.
Bosnia and Herzegovina Economy Data
5 years of Bosnia and Herzegovina economic forecasts for more than 30 economic indicators.
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Bosnia and Herzegovina Facts
|Exchange Rate||1.74||-0.65 %||Dec 31|
|Stock Market||0.5||0.0 %||Jan 07|
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