According to data of the BiH Agency for Statistics, BiH is in recession, said economist Faruk Hadzic.
“I have known this for some time on the basis of estimates and analyzes I have done, but I waited for an official announcement,” Hadzic said on his Facebook profile.
Slowing down of the economy or recession means a decline in economic activity, i.e. GDP, in two consecutive quarters, which is the case here.
The causes should be sought in the drop in exports, which has been present for some time.
“General deterioration of the foreign trade balance led to a decline in GDP,” Hadzic points out.
The data released for 2019 were based on estimates, given that the actual, available data for exports and imports are worse than in estimates – export is down by around 230 million KM and import is up by around 210 million KM compared to estimates.
There are measures in the domain of fiscal policy and income policy the application of which can, not only help in recovery, but also further stimulate economic activity. “Solutions exist, they just need to be implemented,” Hadzic says.
“The solution is to stimulate population spending by reducing tax burdens,” he says.
He says our authorities are refusing to relieve BiH citizens.