THE IMPACT OF THE COVID-19 EPIDEMIC ON ECONOMIC TRENDS IN BOSNIA AND HERZEGOVINA

Abstract

The corona virus led to a sharp and unexpected downturn in the world economy that spared almost no world economy. According to the forecast of the International Monetary Fund, the decline in the world GDP is 3.3%. The situation is similar in Bosnia and Herzegovina as well. According to the Agency for Statistics of BiH, the fall in GDP in 2020 averaged 4.5%, while in the second quarter during the lockdown it was as much as 9.3%. The International Monetary Fund forecasts the growth of the world economy in 2021 of 6% and 4.4% in 2022. Economic growth is forecast for BiH as well. According to the World Bank, after a 4% drop in 2020, GDP growth in BiH is expected by about 2.8%. This paper deals with the consequences of the COVID-19 epidemic on key economic parameters and living standards in BiH. In particular, the economic measures taken by governments in an attempt to protect the economy are analyzed, with a special emphasis on a critical analysis of measures taken so far and an attempt to define key parameters that will enable rapid and stable recovery and development in the coming period.