This report covers the main macroeconomic releases from March 6 until April 5, 2015 as well as the financial and political events that took place in Bosnia during this period.
The Council of the European Union said that it welcomes the statement declaring the country’s pro-EU commitment adopted by Bosnia’s presidency, political parties and parliament, noting that the country has met all necessary conditions for entry into force of the Stabilisation and Association Agreement it has signed in 2008.
Ratings agency S&P has affirmed its credit rating on Bosnia at B/B on expectation of continued and significant international support. The outlook is confirmed at stable.
Bosnia’s parliament approved on March 31 the new government, proposed by the elected last month pro-EU PM Denis Zvizdic. The cabinet has been voted by the parliament six months after the general elections. It is formed by nine ministers, including two Deputy PMs.
The country’s economic growth accelerated to 2.4% y/y in the fourth quarter of 2014 from a revised 0.5% y/y in Q3d. The reading reflected growing administrative and support services, transportation and storage and wholesale and retail trade sectors.
The European Union will provide Bosnia additional €43mn for recovery from the floods that hit the country last year, according to the head of the EU delegation to the Balkan country, Renco Davidi.

Key points:
• CPI deflation eased to 0.7% y/y in February from 0.9% y/y in January
• The working-day adjusted industrial output decreased by 1.1% y/y in February, easing from a 1.3% y/y drop in January thanks to improved performance in mining and manufacturing sectors.
• The current account deficit widened 36.8% y/y to BAM2.1bn (€1.1bn) in 2014, mainly on the back of higher foreign trade gap and a mild rise of services income from abroad