Council of Ministers of BiH adopts information: Economic growth trend slowed in 2023

(Patria) - The Council of Ministers of BiH adopted the Information of the Directorate for Economic Planning on the movement of macroeconomic indicators for January-June 2023 in Bosnia and Herzegovina.

Statistical data for 2023 indicate that the economic growth trend from the previous year has significantly slowed, which is a consequence of rising prices of goods and services, i.e., inflation, and the weakening of economic activity in the international economic environment. In the first quarter of 2023, BiH recorded real economic growth of 1.1% compared to the same period last year. The key reason for the slowdown in the economic growth trend in 2023 is the weakening of private consumption.

The slowdown in economic activity in the country (private consumption and investments) and the weakening of export demand (slowing economic growth in the EU) resulted in a slowdown in the growth trend of foreign trade in Bosnia and Herzegovina in the first quarter of 2023, so that it increased by 2% in real terms compared to the same period last year.

According to data for May this year, there were 855,600 employed persons in BiH, which is 1.7% more compared to May last year. At the same time, there were 345,000 unemployed persons, which is 4.35% less compared to the same month in 2022. The unemployment rate in May 2023 was 28.7%.

The average net salary in May 2023 amounted to 1,275 KM, with a nominal increase of 15.3% and a real increase of 8.2% compared to the same month last year. The average pension in Bosnia and Herzegovina in June 2023 amounted to 567 KM and, compared to June 2022, is nominally higher by 19.5%.

The growth rate of total tax revenues in the first half of 2023 was 11.1% compared to the same period last year. A total of approximately 10.4 billion KM in public revenues was collected, based on direct and indirect taxes, social contributions, fees, fines, and charges.

In the first half of 2023, inflation of 9.3% was registered compared to the first half of 2022. Observed by purpose of consumption, the most significant price increase was in the categories of food and non-alcoholic beverages, and housing, water, electricity, gas, and other energy sources.