November 1 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it lowered Bosnia's economic growth forecast for 2018 to 3.0% from 3.3% projected earlier.
Reforms have slowed down in 2018 in advance of the general elections held in early October, and the latest review of the International Monetary Fund (IMF) programme has been on hold because of concerns over new spending proposals in both entities, the EBRD said in its latest Regional Economic Prospects report.
"Investment in public roads is expected to play a more growth-supportive role in the coming period. Nevertheless, uncertainty associated with the aftermath of the general elections in October 2018 and the stalling, or even possible reversal, of reforms remain important downside risks," the EBRD noted.
The fund added that Bosnia's economy is expected to bounce back and achieve growth of 3.5% in 2019.
Bosnia's GDP growth slowed down to 3.0% in 2017 from 3.1% a year earlier.