Consequences of the pandemic on the economy: 16.81 percent lower turnover in the first half of the year

(Patria) - The Government of the Federation of BiH today considered information from five federal ministries on the consequences of the coronavirus pandemic on the economy of the Federation of BiH, which, combined into one document, will be sent to the FBiH Parliament.

According to the information from the Federal Ministry of Finance, in accordance with Article 4 of the Law on Mitigating Negative Economic Consequences, subsidies for contributions for April, May, and June amount to a total of 89,915,203.44 KM. During July 2020, 31.3 million subsidized contributions for April were paid, in August another 1.4 million for April, and in September, 56.9 million subsidized contributions were paid, of which 5.2 million KM for April, 32.2 million KM for May, and 19.5 million KM for June.

In the period January - July 2020, a turnover of about 25 billion KM was recorded, which is 16.81 percent lower compared to the same period of the previous year. Turnover growth in the first two months was 1.9 percent higher compared to the same reporting period of the previous year, but due to the impact of the pandemic and the introduction of restrictive measures from March 2020, the recorded turnover began to fall. The largest turnover drop was recorded in April, by 36.63 percent compared to March 2020, while in June and July 2020, turnover increased compared to the previous month.

According to the information from the Federal Ministry of Trade, in the FBiH, from March 16, 2020, i.e., from the declaration of the state of emergency, until July 16, 2020, the cessation of operations of 342 registered traders was recorded. Of this number, the largest share is in Tuzla (91) and Sarajevo Canton (72).

As of July 16, 2020, there were 94,972 employed workers in the trade sector, which represents a decrease of 3,784 in this sector. This was due to a reduction in jobs as a result of decreased turnover or cessation of operations. A decrease in the number of employees is noticeable in all ten cantons, with the largest decrease of 980 in Sarajevo Canton, followed by Central Bosnia Canton with 642 fewer employees.

According to data from the Central Register of the Tax Administration of the Federation of BiH, in the period from March 16 to July 16, 2020, 617 newly established business entities in the trade sector were registered in the Federation of BiH, of which 13 ceased operations in the same period. By place of registration, the largest number of newly registered traders are in Tuzla (160), Sarajevo (150), and Zenica-Doboj Canton (100).

Regarding road transport, according to the information from the Federal Ministry of Transport and Communications, during the state of emergency, public passenger transport was completely banned, which involved 58 carriers, 151 bus line schedules, and a total of 580 departures and returns on federal lines.

On cantonal lines, this involved 82 carriers, 338 bus line schedules, and a total of 3,066 bus departures and returns, 559 trolleybuses, 446 trams, and 673 minibuses. On city and municipal lines, this involved 119 carriers, 949 bus line schedules, and 5,352 departures or returns.
JP Željeznice Federacije BiH suspended passenger transport by order of the Federal Civil Protection Headquarters from March 16, 2020, to May 12, 2020, but during that period, their subsidy for passenger transport based on the Law on Financing the Maintenance of Railway Infrastructure and Co-financing of Railway Passenger and Combined Transport was not suspended in the amount of 366,666 KM.

The information from the Federal Ministry of Environment and Tourism stated, among other things, that since the outbreak of the coronavirus in February 2020, a decrease in tourist arrivals and overnight stays has been recorded. In February of this year, compared to the same month in 2019, the number of tourist arrivals decreased by 8 percent, and the number of overnight stays by 15.9 percent, while in March the decrease was around 75 percent. The number of tourist arrivals in April 2020 was 99.3 percent lower compared to April 2019, and in May, it was 98 percent lower compared to May 2019. In June, the number of arrivals was 89.3 percent lower compared to the same month last year, and the number of overnight stays was 89 percent lower. The number of tourist arrivals in July was 80.2 percent lower compared to the same period last year, while the number of overnight stays was 73.2 percent lower.

According to the information from the Federal Ministry of Health, the epidemiological situation in the Federation of BiH is becoming more complex. In the Federation of BiH, as of September 7, 2020, 127,281 tests have been performed, 13,566 people have tested positive for coronavirus, of whom 9,696 have recovered, 382 people have died, and there are 3,488 active cases.

The information stated that an adequate response to the coronavirus outbreak in our country requires maximum responsibility, cooperation, and unity from health institutions and organizations, as well as other public institutions at all levels of government, the media, and every individual citizen.
The role of scientific institutions, which can contribute to all segments of COVID-19 epidemic control, is particularly important.