The highly fractious state of Bosnian politics means that future reform moment will likely be anaemic, preventing the country from realising its full growth potential.
Major Forecast Changes
We have revised our 2012 current account deficit estimate to 7.4% of GDP from 6.4% previously.
Key Risks To Outlook
Downside Risks To Growth: With much depending on external demand, the risk of a slowdown in Bosnia's key export partners elsewhere in Europe could threaten the recovery and our growth projections.
Upside Risks To Inflation: Since the economic downturn, inflation has been fairly subdued. However, there are risks of a surge in imported inflationary pressures given the recent surge in some global agricultural prices such as corn and wheat.
Click for Report details:Bosnia-Herzegovina Business Forecast Report Q1 2013