Bosnia’s Serb Republic economic growth speeds up to 1.3% in Q2 2013

By bne IntelliNews October 1, 2013

Bosnia’s Serb Republic GDP grew a real 1.3% y/y in the second quarter of 2013, after expanding 0.9% in Q1 helped by higher manufacturing and public administration sectors' output, the entity’s statistics office said. In seasonally-adjusted terms, second-quarter GDP increased by 1% q/q, following a 0.5% q/q rise in the first three months of the year.

The manufacturing output, which accounts for 9.7% of the entity’s GDP, rose 10.1% y/y, whereas the public administration sector (holding a 19.2% share in GDP) went up 1.9% y/y.

Conversely, wholesale and retail trade (17.2% share) and real estate sectors (4.8% share) contracted by 0.8% y/y and 0.9% y/y, respectively, in April-June. The construction sector (a 4.4% share), which have been declining in annual terms since January 2009 (latest available), likewise remained in the red, declining by 3.0% in Q2.

The Serb Republic's economy contracted by a real 1% in 2012, following a 0.8% growth the year before, on falling agricultural, manufacturing and utilities output and shrinking construction and real estate activity. According to local analysts, the entity’s GDP will likely expand 2.0% this year supported by higher industrial output and sales abroad. The Serb Republic’s GDP accounts for around one third of Bosnia’s total GDP. The Republic makes up Bosnia and Herzegovina together with the Muslim-Croat Federation.

Related Articles

Bosnia indicts former interior minister, 37 others for organised crime

The prosecution of Bosnia & Herzegovina’s Sarajevo canton formally indicted former interior minister Alija Delimustafic and 37 other individuals, as well as eight legal entities in a large ... more

Bosnia officially joins Transport Community, unlocking €250mn in EU funding

Bosnia & Herzegovina has formally joined the Transport Community, unlocking more than €250mn EU funding for projects in the country. The European Union and five Western Balkan partners ... more

Bosnia risks losing access to external funding after IMF deal derailed, S&P warns

Standard & Poor’s has affirmed Bosnia & Herzegovina’s B/B foreign and local currency ratings and its stable outlook, but warned that divisive politics are delaying ... more