Bosnia’s industry remains on downward path despite small recovery in Q3

Bosnia’s industry remains on downward path despite small recovery in Q3

/ bne IntelliNews

By bne IntelliNews October 27, 2023

The industrial output index in Bosnia & Herzegovina (chart) contracted by 0.4% y/y in Q3, returning to a more moderate downward path after the disappointing -6.5% y/y performance in Q2, according to data published by the statistics office.

The seasonally adjusted index edged up by 0.7 q/q in Q3, partly recovering after the 1.7% q/q decline in Q2. Bosnia’s industry has constantly lost ground since early 2022 when it reached the post-COVID peak level. From a broader perspective, the country’s industry entered a negative path since early 2019 much before the COVID-19 crisis. It never returned to the levels of activity seen in 2018.

Broken down by industry, the manufacturing output contracted by 2.4% y/y in Q3. The food processing industry, which holds a significant share in any country, contracted by 5% y/y after a significant negative performance in Q2 (-5.8% y/y).

Among the major industries, basic metal production dropped by 16% y/y after steeper (-25% y/y) performances in the previous two quarters. Manufacturing of textiles contracted by 18% y/y after much weaker performances in the previous quarters.

The industries that picked up from Q2, are the wearing apparel manufacturing (+5.9% y/y) and that of fabricated metal products (+9.8% y/y). Both sectors posted deep negative performances in the previous two quarters.

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