SARAJEVO, Bosnia (October 7,2008) - According to the Director of the World Bank’s Office in Bosnia Marco Mantovanelli, the Bosnian economy is in quite a good shape. The inflation rate is around eight percent, and it is not expected to go over ten percent by the end of 2008, and GDP growth rate is at a stable six per cent, so there is no reason for major concerns,he said.
However, the financial crisis that first hit the United States and than started pouring over to Europe will certainly be felt in Bosnia, as well,he said.
Mantovanelli is uncertain about the extent of its impact, but says that banks in Bosnia are already more restrictive in lending, interest rates are slightly up, while remittances are stagnant (last year the expatriates sent around 4 billion Bosnian Marks to their relatives in Bosnia).
As a result, Mantovanelli expects the real estate prices to go down. He hopes the state would find ways to help the business sector.