This report covers the main macroeconomic releases from May 6 until June 5, 2015 as well as the financial and political events that took place in Bosnia during this period.
The IMF said that Bosnia needs an ambitious policy agenda to accelerate growth and reduce unemployment, while maintaining macroeconomic stability. The country should focus on more reforms that would improve the business environment, attract investment, and raise the economy’s growth potential.
At the same time, Ron van Rooden, who as leading an IMF mission to the country, said that Bosnia needs to complete many tasks in order to sign a new agreement with the IMF.
The European Bank for Reconstruction and Development (EBRD) lowered its 2015 growth projection for Bosnia to 2.5% in the May edition of its Regional Economic Prospects from 2.7% in the January edition. Bosnia is expected to benefit from lower oil prices. Rebuilding of flood-damaged areas should also support the economic growth in 2015 and 2016.
On the other hand, the government’s Directorate for Economic planning (DEP) forecasted that Bosnia’s economy should expand by 2.6% in 2015.
The ruling coalition in country’s bigger entity, the Federation, collapsed after the Democratic Front (DF) withdrew its support for the government of Prime Minister Fadil Novlic. The crisis was sparked by Novalic's decision to propose to the government a change in the procedure for appointing managers of state-controlled companies, without informing the respective ministers.

Key points:
• The working-day adjusted industrial production rose by 2.2% y/y in April, accelerating from a 0.4% y/y in March
• Retail sales, measured in constant prices, increased by 10.5% y/y in April, accelerating from a 6% y/y expansion in the previous month
• The consolidated budget posted a surplus of BAM65.1mn (€33.3mn) in 2014