Bosnia’s Federation GDP eases to 1.3% in Q3 2013

By bne IntelliNews February 3, 2014

Bosnia’s Federation GDP grew a real 1.3% y/y in the third quarter of 2013, slowing from а 1.6% y/y growth in Q2 and 2.5% expansion in Q1, data from the entity’s statistics office showed. The Q3 GDP growth was underpinned by higher industrial and agriculture sectors' output and construction activity. In seasonally-adjusted terms, third-quarter GDP edged down 0.5% q/q, deteriorating from a 0.3% q/q drop in April-June.

This is the first time the office publishes quarterly GDP data.

The manufacturing output, which accounts for 12.4% of the entity’s GDP, rose 7.2% y/y in Q3, slowing from an 11.7% y/y hike in the previous quarter. The agriculture sector (8.4% share) expanded 7.8% y/y in July-September, likewise, easing from an 8.0% growth in Q2. The construction sector (holding a 4.2% share in GDP) grew by 6.7% y/y in July-September, following a 1.5% drop in Q2.

On the other hand, the wholesale and retail trade (13.5% share) and information and communication sectors (4.4% share) retreated by 2.2% y/y and 7.2% y/y, respectively, in Q3. The real estate sector (a 4.7% share) inched down 0.2% y/y in July-September following a 0.3% growth in the previous quarter.

The Federation’s economy contracted by a real 1.2% in 2012, following a 0.9% growth the year before, on falling agricultural, industrial and utilities output and shrinking construction activity. The entity’s GDP accounts for around two thirds of Bosnia’s total GDP.

The Federation makes up Bosnia and Herzegovina together with the Serb Republic.

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