PRICES UP 7.5% IN BOSNIA

SARAJEVO, Bosnia (June 13,2008) - Prices in Bosnia have risen by 7.5 percent in the last year prompting the World Bank to urge the Bosnian government to do more to stem the problem.

The World Bank office in the Bosnian capital Sarajevo however said that at the moment there is no need for real concern.

In an interview with Bosnian daily Dnevni Avaz, the director of the Bosnian office of the World Bank, Marco Mantovanelli said that the macroeconomic situation is relatively good in the country at the moment while growth of the Gross Domestic Product remains 5 to 6 percent “and that gives a positive picture of the country.”

According to the World Bank, the increase in prices is relatively low in Bosnia in comparison with global trends but it does not give a reason for the Bosnian government to relax and they should be aware of what is going on in the region and the world.

Mantovanelli said the Bosnian government should consider ways to help the most vulnerable segments of society.

“There should be a good, transparent system to help poor people in order for them to be able to maintain their purchasing power, and that will help the whole economy to keep on going,” said Mantovanelli adding that agricultural sector should be stronger too.
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