International Information Centre for Balkan Studies

IMF: Bosnia's economy to shrink 6.5 percent in 2020

October 14, 2020

Bosnia's DGP is expected to drop 6.5 percent in 2020, as a result of the coronavirus pandemic, the International Monetary Fund (IMF) said in its revised estimates for the region, meaning the country's economy will shrink even further compared to April estimates of only 5 percent.

The country's economy will likely pick up in 2021 by a modest 5 percent, which is also a revised number compared to April's Economic Outlook Report when they said the economy will gry by 3.5 percent.

The Fund added that they expect the country's economy to grow at the rate of 3.5 percent 2025.

The Report also claims consumer prices will drop 0.8 percent in 2020, compared to 0.7 percent from April estimates.

Inflation forecasts stand at 0.4 percent and the country's current account deficit is expected to rise to 4.4 percent of GDP this year.

Currently, the gap is expected to widen to 6.1 percent of next year's GDP, before narrowing to 3.8 percent in 2025, the IMF said.

According to them, Montenegro's GDP will shrink by 12 percent (three percent more than the previous estimate), Croatia's by nine percent (unchanged estimate), Albania and Kosovo's by 7.5 percent each (2.5 percent more than the previous estimate), the North Macedonian by 5.4 percent (1.4 percent more than the previous estimate) and Serbia's by 2.5 percent (0.5 percent more than the previous estimate).

Source:  http://ba.n1info.com/English/NEWS/a478524/IMF-Bosnia-s-economy-to-shrink-6.5-percent-in-2020.html

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