This report covers the main macroeconomic releases from November 6 until December 5, 2015 as well as the financial and political events that took place in Bosnia during this period.
Bosnia is at an early stage of achieving European standards, according to the EC report on the country issued on November 10. The report assessed that the country needs to make significant efforts in most of the policy areas in order to further align with the EU acquis, including in financial control as well as statistics where the country is at an early stage and major steps are needed to address outstanding priorities.
Bosnian authorities need to complete their 2016 budget drafts and finalise a number of reform plans in order to comply for new deal with the International Monetary Fund (IMF).
The leaders of Bosnia’s new ruling coalition have agreed that members of the newest partner - Alliance for a Better Future (SBB), which joined after the previous coalition split in June – will participate in the central-level government.
Although Bosnia has advanced in legislation preventing money laundering and terrorist financing, the country needs to further improve it in practice, according to the latest report of MONEYVAL.
The European Bank for Reconstruction and Development (EBRD) boosted its 2015 growth projection for Bosnia to 2.8% in the November edition of its Regional Economic Prospects from 2.5% in the May edition.

Key points:
• CPI deflation stayed at 1.8% y/y for the second month in a row in October
• The working-day adjusted industrial production in Bosnian Federation increased by 3.7% y/y in October
• The foreign trade gap narrowed 8.0% y/y to BAM5.7bn (€2.9bn) in the first ten months of 2015