The World Bank's office in Sarajevo issued a press release on Monday saying that the economic indicators for Bosnia showed the economy"s robust expansion in 2005, "but the pace of economic growth was slower because of slower progress on structural reforms and higher international prices for oil and natural gas."
The World Bank Country Manager Dirk Reinermann pointed out that "the large current account deficit remains a key challenge."
The report also states that inflation in 2005 rose moderately due to increases in excise taxes and higher import oil prices, but remained near industrial country levels.
The World Bank has assessed that the introduction of the Value Added Tax has been successful so far.
Bosnia introduced the VAT with a single rate of 17 percent on 1 January this year.