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Bosnia expects growth this year despite crisis

Autor: itom
SARAJEVO, April 6 (Hina) - Bosnia and Herzegovina's central bank analysts predicted this year's real economic growth rate at one per cent, although international financial institutions such as the World Bank believe there will be no growth or that it could reach a maximum 0.5 per cent.

Central bank governor Kemal Kozaric told reporters on Thursday the projection was optimistic but that it was the result of a thorough analysis of the situation in the country.

He said the national economy declined 0.5% in 2012 and that industrial output contracted 5.2% on the year, with the projection that this year it would rise 3%.

Gross domestic product in 2012 amounted to EUR 13.2 billion.

The average inflation was 2.1% and the central bank predicts it will be 2% this year.

Unemployment is expected to drop from 28% in 2012 to 27% this year.

The country's foreign debt is EUR 3.6 billion, accounting for 27.5% of GDP, and it is expected to reach EUR 3.8 billion this year.

The balance of payments deficit is EUR 1.2 billion or 9.4% of GDP.

The central bank's foreign reserves amount to EUR 3.3 billion.

(Hina) ha

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