EU PROSPECTS FOR BOSNIA AND HERZEGOVINA: BETWEEN STAGNATION AND GROWTH

Abstract

The aim of this paper is to point to the specificities of economic and political transformations in Bosnia and Herzegovina (B&H) and the Western Balkan in the context of economic and political changes in the global environment that can significantly affect the EU accession process. An analysis of the position of B&H in the group of Western Balkans countries and the perspective of economic growth was conducted by focusing on the political and economic criteria as well as on the current obstacles these countries are facing, specifically, based on their political and economic background and in conditions where external risks are growing. All these countries are commited to implementing structural reforms because the commitment of all the countries towards Europe, which means convergence towards the European countries and a reduction in the size of the GDP per capita. In order to achieve such long-term goals, it is necessary to implement structural reforms that will result in stimulating production, trade, financial flows and reforming the labor market and the public sector. That is why growth of investment and exports is the main determinant of long-term growth. This paper gives an overview of the basic economic features of B&H compared with the other countries that belong to Western Balkan region, as well as projections on the certain macroeconomic indicators in the forthcoming period.