Bosnia and Herzegovina: 2008 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Bosnia and Herzegovina
Volume/Issue:
Volume 2008
Issue 327
Publication date: October 2008
ISBN: 9781451804973
$20.00
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Topics covered in this book
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Business and Economics , Banks and Banking , Exports and Imports , Inflation , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , authority , BiH authorities , authorities of Bosnia and Herzegovina , RS government , private sector , headline inflation , Current account deficits , Global
Summary
This Article 2008 IV Consultation highlights that Bosnia and Herzegovina’s economy has been exhibiting robust growth, but imbalances have emerged. The current account deficit has widened and underlying inflation has picked up. Procyclical fiscal policy has added to these imbalances. Moreover, large public-sector wage increases threaten to spill over to private sector settlements, thus exacerbating inflation pressures and weighing on competitiveness. Credit growth has started to slow down, and tightened financial conditions have resulted in a fall in bank profitability.
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