BUSINESS

When to expect the First Signs of Economic Recovery in Bosnia?

We can expect the first signs of recovery of the economy of Bosnia and Herzegovina at the end of 2021, and the recovery will mostly depend on the situation in the countries of Western Europe, with which BiH realizes more than two-thirds of foreign trade.

These are the opinions of economic experts and analysts who agree in an interview with Nezavisne that it is currently ungrateful to predict when the recovery of BiH could happen, because it is not yet known how long the coronavirus pandemic will last.

Some economic analysts are of the opinion that the metal and footwear industry will be the first to recover from the crisis, and that the hospitality industry will wait for the longest, while on the other hand there are those who claim that the hospitality industry will have the highest revenues after the pandemic.

”The pandemic lasts much longer than the first announcements. It is ungrateful to predict how long the crisis will last and how much damage it will ultimately cause to the economy, not only in Republika Srpska, but also far beyond,” Vladimir Blagojevic, PR of the RS Chamber of Commerce told Nezavisne.

He added that there is no company in RS that is not in some way, directly or indirectly, affected by the spread of the coronavirus.

Mirsad Jasarspahic, president of the Federal Chamber of Commerce, told Nezavisne that the first signs of improvement can most likely be expected by the end of 2021, and that the BiH economy is directly vulnerable to the transfer of influence from the markets with which it is most connected, such as Germany and Austria.

”The most important thing that will happen to global supply chains connected to our businessmen is that large chains will try to move away from distant destinations, because they want to reduce the risk for some future situations such as a pandemic, and will opt for closer destinations, such as the Western Balkans,” Jasarspahic explained.

He added that this situation should certainly be used by businessmen in BiH.

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