The World Bank (WB) kept its 2018 real GDP growth forecast for BiH at 3.2%, according to its latest Global Economic Prospects report. This is unchanged from a May report of the Bank and January Global Economic Prospects report. The WB’s 2018 GDP growth forecast matches IMF’s projection and is less optimistic that the government that expects GDP growth of 3.4% this year. The WB also upheld its 2019 and 2020 GDP growth forecasts at 3.4% and 4.0%, respectively.
Recall that back in May the WB said that it expected consumption and public investments to be the main growth drivers. It warned that with the planned increase in public investments the fiscal stance could deteriorate over the medium term if reforms to reduce the high public wage bill and improve tax collection are delayed. It also noted that with the approach of the general election reforms may slow, which could affect the outlook.