Bosnia and Herzegovina
Year: 2025
Type: article
Abstract: The 2025 Article IV Consultation discusses that growth has remained resilient despite a challenging environment and is projected at 2.4 percent in 2025 in Bosnia and Herzegovina. Downside risks are elevated, including trade tensions, weaker external demand, heightened domestic political tensions and policy slippages ahead of the 2026 elections. The external position is expected to remain broadly unchanged in 2025, while credit growth is projected to moderate somewhat. The outlook is subject to downside risks. Strong growth in real wages and private sector credit could put upward pressure on inflation. Fiscal policy should focus on medium-term consolidation, rebuilding buffers, and improving the quality of public spending, supported by a strong structural reform agenda. Safeguarding central bank independence, strengthening its policy toolkit, enhancing macroprudential oversight, and closely monitoring financial sector risks are essential to preserving the currency board arrangement and ensuring financial stability.
Source: IMF Staff Country Reports
Author: International Monetary Fund. European Dept.
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413947736