IMF: Slight growth of BiH economy, danger due to Ukraine crisis!

Bosnia and Herzegovina will have an economic growth of two percent this year, while forecasts for next year are slightly better with a growth of 3.2 percent, according to the latest report on the world economy by the International Monetary Fund (IMF) for 2014, reports the BiH news agency Patria (NAP). Price growth this year will be 1.1 percent, while next year, according to predictions, it will be 1.5 percent.

The most influential world bankers, prime ministers, and finance ministers from almost all countries have gathered in Washington these days for the regular spring session of the IMF, where this report on global trends will be presented.

BiH will be represented at this meeting by, among others, the Governor of the Central Bank of BiH, Kemal Kozarić, and the session is chaired by the IMF's Managing Director, Christine Lagarde.

Predictions for BiH indicate a continuation of slight economic growth, mainly conditioned by the recovery in European Union countries. However, the entire region, according to the detailed report, has not yet emerged from the "red". IMF experts state that growth and recovery after the recession have slowed down, reports the BiH news agency Patria.  

Countries, as stated, have major problems with structural reforms, including labor law reforms and transition, but geopolitical developments and especially the crisis in Ukraine also have a negative impact.

- The escalation of the crisis in Ukraine could have a significant negative impact on developing European economies, especially regarding access to finance and free trade - the report states. Furthermore, it is emphasized, concerning the region to which BiH belongs, that unresolved problems of weak credit growth, low domestic demand, unemployment, and the growth of non-performing loans persist, reports NAP.