Bosnia and Hercegovina (BiH) has made significant strides towards establishing a market economy, but a great deal remains to be done if its economic progress is to become more sustainable, the European Bank for Reconstruction and Development (EBRD) declares in a paper issued today.
The bank's latest strategy analyses the economic climate and outlines the EBRD's priorities in the country over the next two years.
Despite low inflation, improved fiscal discipline and annual economic growth averaging around four per cent, the Bosnian economy is still fragile, with GDP per capita about 1,400 dollars and poverty and unemployment widespread. To help address these concerns, the EBRD intends to focus more on strengthening the country's private enterprise sector - channelling finance to small- and medium-sized enterprises (SMEs) and working to lure foreign strategic investors - as well as promoting new investment in infrastructure.
