Arapović: Political tensions threaten foreign investment

Program Manager of the Center for Civil Initiatives Adis Arapović said today at a parliamentary debate in Sarajevo that the Federation of BiH is not recording significant results in the area of business climate and the labor market, although these are key issues affecting citizens' lives. Arapović recalled the growth in employment and the decline in unemployment rates, but these are still very low, ranging between two and three percent.

Arapović also recalled a drastic drop in foreign investment in the FBiH, which he believes happened due to a poor environment for attracting domestic and foreign investment.

The average annual level of foreign investment in the past five years was close to three percent, while in 2016, direct foreign investment amounted to about 100 million KM, which will be below one percent of GDP.

- Foreign investment is driven away by political instability and crisis, tensions, conflicts among political actors – said Arapović, adding that the low level of investment is also influenced by insufficient removal of administrative barriers.

- There is no relief for the economy; on the contrary – new taxes, fiscal and parafiscal charges are being introduced – says Arapović, Patria reports.