The Growth of Foreign Investments and reducing of Unemployment in B&H by 2018

The Growth of Foreign Investments and reducing of Unemployment in B&H by 2018

After the expected economic growth of 2.5 % this year in B&H, in the upcoming year this rate should be amounting to 3.1 %, as stated in the latest report by the Directorate for Economic Planning of B&H.

It is expected that the growth of investment will go from 7.3 % in this to 9.6 % in the following year, thus the overall increase domestic demand this year should amount to 2.3 %, and 2.9 % in the next year.

The Directorate for Economic Planning of B&H predicted a reduction of unemployment until the end of the year, which should be accompanied by the increase of the number of employees by 1.5 %.

“With estimated economic growth, the continuation of the positive events in the labor market is expected in 2016, and in 2017 and 2018 is planned the increase of the volume of demand, investment and trade, which should have a positive impact on creation of workplaces and increase of average net salaries,” as stated in the report.

It is expected that the average net salary could be increased by 1.9 and 2.1 % in the next 3 years.

In this institution believe that the reform process and improvement of the business environment, standardization, and greater diversification of export markets should significantly improve B&H exports, whose growth is expected from 6.7 to 7.4 % in 2017 and 2018.

Complete normalization of the economic situation in B&H and in the field of foreign trade is estimated within the next 3 years.