Bosnia is heading towards recession c-banker.

By bne IntelliNews September 18, 2012
Bosnias central bank governor Kemal Kozaric said on Monday, Sept 17, that the country is heading towards recession, daily Dnevni Avaz reported. Kozaric was speaking at round table on the financial literacy in Bosnia held in Sarajevo. He said that the central bank will have the third-quarter results of the countrys economic indicators in October when it will be able to say for sure whether or not Bosnia has entered a recession. Kozaric said in July that the central bank has cut its 2012 GDP growth forecast to 0.6% from 1.6% due to the countrys poor economic performance in the first months of the year. At the end of July the IMF said its forecast for zero growth in 2012 in Bosnia may prove to be optimistic as the domestic economy suffers strong downside pressure from foreign factors, which weaken Bosnias exports and capital inflows, and domestic factors like subdued demand, lower tax collection and pressure on public finances. Also in July, the EBRD cut its 2012 economic growth forecast for Bosnia to 0.3% from 0.4% made earlier in May. It said that although the countrys economy has been rather stable in the past couple of years, the domestic consumption remained weak due to falling remittances and fiscal austerity. Bosnias overall economic outlook stays weak despite the fact that some of the weakness could be compensated by a continuous strong demand for certain export items such as metals and timber in the short term, the EBRD has said. The Bosnian economy expanded by 1.26% last year after rising only 0.7% in 2010.

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