This report covers the main macroeconomic releases from June 6 to July 5, 2015 as well as the financial and political events that took place in Bosnia during this period.
The World Bank has improved its forecast for Bosnia’s economic growth in 2015 to 2% from an estimated 0.4% in 2014, according to the June’s edition of the banks Global Economic Prospects. Bosnia’s economy is expected to further accelerate its growth to 2.3% and 2.9% in 2016 and 2017, respectively.
Bosnia’s Serb Republic – the smaller of the two entities forming the country, has refused to sign the Reform Agenda, required by the European Union (EU) as a step towards the country’s accession process, provoking the enlargement commissioner Johannes Hahn to cancel his visit to the country.
Meanwhile, the bigger entity – the Muslim-Croat Federation, faced a political crisis as one of the parties forming the ruling coalition, withdrew its support for the government.
Also in that period, the Directorate for Economic Planning (DEP) said in its monthly report on macroeconomic developments said that the available indicators show that economic activity in Bosnia speeded up in the first quarter of 2015, driven mainly by the rise of exports, the real sector, as well as the rise in domestic demand.

Key points:
• CPI remained unchanged y/y for a second month in a row in May
• The retail sales, measured in constant prices, increased by 14.6% y/y in May
• The public debt totalled BAM11.5bn as of end-2014, including BAM8.2 foreign debt and 3.3bn in domestic liabilities