Europe transforms, tensions simmer in the Balkans. Kosovo and Serbia negotiate, complexities unfold. Russia looms, Europe shifts. Challenges persist, but progress bypasses treaties. Innovative ideas propose gradual accession, extended benefits. Unravel with us Europe’s puzzle: the future of EU expansion. |
Although we expected that economic activities would bottom out in Q1 2023, it seems that the recovery in private consumption over Q2 could not fully mitigate the negative contribution of the widened net exports position, so the outcome is slower GDP dynamics in Q2: +1.2% yoy. |
On Aug 4, 2023, S&P raised its LT local and foreign currency sovereign credit ratings on B&H to B+ from B, based on resilient economic growth and favorable fiscal position. The outlook is stable. |
Expectedly, B&H economy lost momentum in the second part of the year, especially in Q4 with real GDP growth of 1.7% yoy, but with no harm to our final FY target of 4% yoy being fully matched. Solid FY growth may slow down to 1.5% yoy in 2023 in line with shallow growth in EA. |
Despite the monthly deceleration, inflation pressure is still high. Data for January 2023 points to an inflation level of 14.1% yoy with amplified trends in commodity-driven market prices: the food segment is the front-runner while energy shows some signs of easing. |