The Republic of Srpska is expected to continue its stable economic growth at 3.5 to 4 percent in the medium term, as a result of sustained growth in domestic demand, a slight recovery in export demand and a positive investment effect, banjaluka.net reports.
Namely, the expected growth of economic activity in the countries in the surrounding area albeit of lower intensity will enable positive trends in foreign trade and will reflect the growth of industrial production, especially of the export-oriented manufacturing industry, and the recovery of the energy sector.
The Economic Reform Program of the Republic of Srpska for the period from 2020 to 2022 states that the growth of industry allows for greater investment, as well as an increase in the number of employment, which, together with the growth of personal incomes, will enable the growth of domestic consumption.
– The planned investment in the observed period should also contribute to the overall economic growth. In the previous period, tax relief was made by increasing the non-taxable portion of income, which led to an increase in salaries for all employees in the Republic of Srpska. The plan is to increase the pay to budget beneficiaries in 2020 with the aim of improving the demographic position of the Republic of Srpska and reducing the departure of the working-age population – stated from the Government of the Republic of Srpska, adding that increased salaries to employees were a new basis for salary projections in the period 2020-2022. years.
The Economic Reform Program of the Republic of Srpska for the period from 2020 to 2022 also stated that the trend of unemployment decline is expected to continue in the observed period so that projected unemployment rates are 9.7 percent, 8.7 percent and eight percent through the three years.
Otherwise, economic activity is expected to grow at a real rate of three percent in 2019, with the largest contribution to the increase in domestic consumption, mainly based on an increase in household consumption, with a slight increase in government spending, and a modest but positive contribution from foreign trade.