Last year, for the first time in a decade, Bosnia and Herzegovina (BiH) recorded a decline in the gross domestic product (GDP), Nezavisne writes.
Namely, according to the latest published data from Eurostat, the European Union (EU) Agency for Statistics, BiH’s GDP last year amounted to 17.38 billion euros, while a year earlier it was 18.04 billion euros, which is about 660 million euros less than in 2019. Previously, in 2018, GDP increased by almost a billion euros, while the last recorded decline of BiH’s GDP was recorded in 2012 compared to 2011 when the decline was somewhat smaller – of about one hundred million euros. Also, if the European statistics are correct, GDP in BiH has grown by more than a third in the past decade.
If we consider the GDP of the EU with 27 member states, last year it amounted to 13.348 billion euros or about 30.000 euros per capita. Germany’s share in the EU economy is about 24 percent, which makes it by far the strongest economy in the European bloc.
However, judging by the data of the European Commission and the International Monetary Fund, BiH can expect a slight recovery of the economy and a return to the old situation if there are no new problems due to the coronavirus.
Andrew Jewell, the International Monetary Fund (IMF)’s resident representative in BiH, told that the corona is the biggest factor of uncertainty when it comes to the possibility of recovery and growth of GDP in BiH.
He pointed out that the IMF expected an increase of three percent compared to last year, but that precise data will be available only in the fall when they plan to issue a new assessment.
“Due to the covid situation, there is a risk that the situation could worsen, especially since people will spend more time indoors during the colder period,” he stated.
If you look at the entities, according to the data of the Republika Srpska (RS) Bureau of Statistics, RS had about 6.000 euros per capita last year, which is about 35 percent of the total GDP. If the population is taken into account, it can be said that RS and the Federation of BiH (FBiH) have equal economic power.
BiH’s GDP by years in billions of euros
2020 – 17,38
2019 – 18,04
2018 – 17,09
2017 – 16,04
2016 – 15,28
2015 – 14,61
2014 – 13,98
2013 – 13,69
2012 – 13,40
2011 – 13,41