Bosnia’s GDP growth will strengthen to 1.6% in 2014 from an anticipated 0.8% increase this year, helped by rising demand from abroad as the EU markets recover, UK-based advisory firm Oxford Economics said in a recent forecast. The outlook is less optimistic than the latest projections of the IMF and World Bank that see a 2.0% GDP expansion next year.
The upturn will remain subdued as stronger recovery of investment activity is expected only after the October 2014 elections, Oxford Economics noted adding that Bosnia’s growth forecast risks remain on the downside reflecting high political risks, budget cuts to meet IMF deficit targets and the country’s strong reliance on multilateral assistance.
Bosnia’s economy swung to a 0.7% contraction in 2012 from a 1.3% growth the year before, due to falling industrial production and domestic demand.
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