Bosnia's economy stagnated in 2013 after contracting a real 1.1% the year before, the country's central bank governor Kemal Kozaric said in an interview for Radio Free Europe. He noted that the economic activity was mainly supported by higher exports and industrial production, while government consumption remained a drag on growth. Kozaric also underscored that 2014 will be challenging for Bosnia due to risks stemming from the general elections planned for October 2014 . The real sector recovery remained constrained by the moderate credit growth at around 4% last year, he added. At the same time, the unemployment rate at 27% is among the region's highest. The government at all levels need to improve the legal framework in order to spur job creation and investments, Kozaric also said. He also said that the IMF is expected to approve the fifth review under Bosnia's EUR 390mn stand-by loan deal on January 20, 2014 . This will guarantee the liquidity of Bosnia's two entities budgets and provide the basis for continued fiscal consolidation.
Most Popular Stories
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Some California Cities Seeking Water Independence
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Jack Daniel's Resists Changes to Tenn. Whiskey Law