Wages dip in Bosnia but rebound expected by year-end

Wages dip in Bosnia but rebound expected by year-end
By Denitsa Koseva in Sofia September 20, 2016

The average monthly net wage in Bosnia & Herzegovina was BAM832 (€425) in July, down 0.6% y/y in nominal terms, data from the country’s statistics office showed on September 19. In June, the net wage increased by a nominal 0.4% y/y.

Although wages moved down in July in both entities - the Muslim-Croat Federation and Republika Srpska - salaries in Bosnia have mostly risen in nominal terms since the beginning of this year. Considering the steady fall of consumer prices since January, the real net wages in 2016 were even higher compared to last year. As Bosnia’s economic growth is likely to speed up in 2016, wages are expected to increase.

The statistics office did not provide data on changes in wages in real terms in July. However, Bosnia's annual CPI deflation was 1% in July and 1.5% in June, suggesting real wage growth of 1.9% y/y in June and 0.4% y/y in July.

Across sectors, the highest annual nominal increase in the average net wage was in arts, entertainment and recreation (up 3.5%), whereas the deepest decline was reported in information and communication (down 4.4%).

The average monthly gross wage also declined by a nominal 0.6% y/y to BAM1,293 in July.