Bosnia and Herzegovina's gross domestic product (GDP) is expected to increase by 2.8% in 2021 provided that the coronavirus epidemic is curbed and economic activities are restored, according to a forecast by the World Bank.

According to the forecasts from the World Bank’s “Global Economic Prospects”, Bosnia and Herzegovina’s GDP growth will be 0.8 percentage points lower compared to the forecasts from June 2020. Then the World Bank said that Bosnia and Herzegovina’s GDP would increase by 3.4%.

The outlook has changed since the country has suffered a 4% drop in GDP in 2020, which is a 0.8 percentage points weaker result compared to World Bank’s report from June last year.

In 2022, the World Bank expects that Bosnia and Herzegovina’s GDP would grow by 3.5% in real terms.

According to World Bank’s projections, Bosnia and Herzegovina and the Western Balkans will see an increase in GDP if consumer and business confidence are restored, if COVID-19 is under control and political instability is reduced.

The World Bank also thinks that recovery in the European Union is important for the Western Balkans as recovery plans should encourage funding.