ZAGREB ZAGREB, April 16 (Hina) - A Deputy Prime Minister of the Federation of Bosnia-Herzegovina and Finance Minister, Nikola Grabovac, spoke about the current economic situation in the Federation and the possibility of cooperation
with Croatia at a panel discussion in Zagreb on Tuesday.
ZAGREB, April 16 (Hina) - A Deputy Prime Minister of the Federation
of Bosnia-Herzegovina and Finance Minister, Nikola Grabovac, spoke
about the current economic situation in the Federation and the
possibility of cooperation with Croatia at a panel discussion in
Zagreb on Tuesday. #L#
One of the main characteristics of the current economic situation
in Bosnia-Herzegovina is an extremely high unemployment rate,
which international experts estimate at 15 percent. However,
according to official data, the unemployment rate is as high as 40
percent (there 270,000 unemployed people in the country). It is
believed that the actual unemployment rate is even higher given the
fact that employed persons account for 400,000 and pensioners for
280,000 of the country's population of 2,600,000. Between 500,000
and 600,000 people are believed to have no income at all, Grabovac
said.
Today's panel was organised by the Zagreb branch of the Croatian
cultural society "Napredak" from Sarajevo in cooperation with the
Croatian Chamber of Commerce. The Bosnian official called on
Croatian businessmen to invest more in the Federation.
Federation exports to Croatia amount to 197 million convertible
marks, while Croatia's exports to the entity total 870 million
convertible marks, which makes Bosnia-Herzegovina one of the few
countries where Croatia has recorded an export surplus. Grabovac
said this imbalance should be changed.
GDP per capita in 2000 decreased in relation to 1991 and amounted to
USD1,129. With an annual growth rate of six percent, Bosnia would
need more than 20 years to achieve Croatia's current GDP of around
USD4,500.
Foreign assistance totalling four million dollars was invested
primarily into infrastructure, not in the economy, while
privatisation has slowed down. The average salary in the Federation
is 450 convertible marks, the consumer goods basket costs 470 marks
and the average pension allowance amounts to 180 convertible marks,
Grabovac said, warning about an extremely serious economic and
social situation in the country.
(hina) sb rml