INTERVIEW
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WE CONTINUE TO ACCELERATE GROWTH AND DEVELOPMENT VJEKOSLAV PETRIČEVIĆ
Minister of Economy and Entrepreneurship of the Republic of Srpska
Estimates say that this year we will have GDP growth of up to 4.5%, and in terms of jobs, today, there are more workers in the Republic of Srpska than in the period before the pandemic espite the global health crisis, the Republic of Srpska’s economy has successfully coped with the challenges created by the pandemic, which is validated by the latest macroeconomic indicators. There are many positive examples of investments on both sides of the Drina River, but there is always room and interest for establishing even stronger cooperation with Serbia. In the future, we will work on establishing more business connections, better product promotion, and exchange of knowhow and experiences.”
Focus
BOSNIA AND HERZEGOVINA 2021
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What is the current economic environment in the Republic of Srpska like? How much does the state allocate for economic development and what kind of investments are made? Statistically speaking, the Republic of Srpska’s GDP in the first quarter of 2021, compared to the same period in 2020, recorded a 2.3% growth, while last year, we recorded a GDP decline of 2.5%, which is the lowest decline in
the region after Serbia. Our estimates show that this year we will have a GDP growth of up to 4.5%, and certain analyses predict that the Republic of Srpska’s GDP per capita will soon surpass the one in the other entity of Bosnia and Herzegovina for the first time.
REPUBLIC OF SRPSKA’S GDP PER CAPITA WILL SOON SURPASS THE ONE IN THE OTHER ENTITY OF BOSNIA AND HERZEGOVINA FOR THE FIRST TIME The average salary has been constantly growing and has exceeded 500 euros, which we consider a great success because it was achieved in a period that was not stimulating for the economy. I would also like to mention that Srpska already exceeded the
average salary paid out in the Federation of Bosnia and Herzegovina last year, which was, among other things, the result of the incentives aimed at increasing salaries, implemented by our ministry. We also have a record-breaking export to import ratio which currently stands at 80%, while exports in the first half of 2021 amounted to 2 billion KM, which is an almost 30% increase compared to the same period last year but also compared to 2019. The increase in industrial production in the period January-June 2021 was 25% relative to the same period last year, with the processing industry has recorded a 17% growth, which is extremely important because it accounts for 85% of Srpska's exports and employs more than 58,000 workers. The most important thing to perhaps highlight is the fact that jobs in Republika Srpska have not been lost, but on the contrary, we have more workers today than in the period before the outbreak of the pandemic. Which economic branches would
