The Government of the Federation of BiH, at its session held on June 3, 2021 adopted the Guidelines for Economic and Fiscal Policy of the FBiH for the period 2022 to 2024.
In the 2016-2019 period, the Federation of BiH recorded an increase at an average rate of 3,2% the macroeconomic framework for the FBiH. In 2020, due to the health (Covid) crisis, the real decline estimated at 4,4%, and in 2021 the recovery and growth of the FBiH economy is expected at 2,8%, similarly to the pre-pandemic period.
Officially published data on the volume of industry in the FBiH for the first quarter of 2021 indicate a 5,9% gradual recovery of this area. In the third month, growth was achieved in all areas of production, especially in the production of capital and durable consumer goods and intermediate goods.
From 2021 to 2024, GDP growth in the Federation of BiH is expected at rates of 4,7%, 6%, 7,1% and 7,4%, respectively.
For 2021, a slight increase in revenue collection of 0,83% is forecast, and in 2022 a significant increase of 3,89% is expected; for the period 2023 and 2024, stable growth will continue by an average of 4,5%.
In the area of fiscal policy, with the aim of economic recovery and accelerated growth after the pandemic, the primary focus will be on improving the system of wages and social benefits. Labor market improvements are also expected, as well as the planning of funds for the recovery and stabilization of the economy, and especially for the health sector, which has suffered multiple burdens during the crisis.
The guidelines contain strategic goals of economic and fiscal policy, basic macroeconomic and economic and fiscal policy indicators, social and economic development assumptions for the fiscal and next two years, an estimate of budget revenues, and projected changes in public debt and public debt management strategy.
Eurofast is a regional business advisory organization employing local advisors in over 21 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Compliance – Advisory & Corporate.
For additional information, please contact our Accountant/Administrator, Ms. Slavica Zeljković, at our Eurofast office in Banja Luka, Bosnia at firstname.lastname@example.org