BUSINESS

Consequences of the Corona Crisis in Bosnia: Recession and Deepening Poverty

The World Bank’s optimistic estimate is that Bosnia and Herzegovina will be hit by the biggest recession in 25 years this year. A drop in the gross domestic product of 3.2 percent is also predicted, as well as numerous negative consequences caused by the coronavirus pandemic, which will further impoverish our country.

The World Bank estimates that the number of poor in Bosnia and Herzegovina will increase by 14.6 percent in 2020 from the current 16 percent. More precisely, 85,000 citizens will become poor.

Economic analyst Faruk Hadzic believes that the adopted aid measures were delayed. He says that “One mistake was made in the beginning because we focused on budget stability instead of going to help the economy and maintain economic stability.”

The Foundation for Social Inclusion in Bosnia and Herzegovina warns that more and more people are losing their jobs, that about 150,000 workers are working illegally and that even greater poverty in the country can be expected.

Ranka Ninkovic Papic, Director of the Foundation for Social Inclusion in BiH said: “If we go back to the situation before the pandemic where we really said according to UN statistics that every sixth inhabitant lives on three to five marks a month, or 90 to 150 a month and that it was about 600-700 thousand, now some independent estimates from the NGO sector they say that somewhere around 800,000 people are poor in Bosnia and Herzegovina. ”

Sociologist Esad Bajtal is of the opinion that the citizens of BiH are apathetic, so additional poverty comes to them as a normal consequence of the pandemic. On the other hand, he points out, you have 110 multimillionaires in such a small country who weigh 10 billion dollars, BHRT writes.

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