Bosnia-Herzegovina is out of recession – that is the good news. But growth is still slow and struggling to improve on the back of a very high unemployment rate of more than 25%. The population’s purchasing power is low, with average earnings of €400 a month and pension payments of between €150 and €170.
The banking sector also suffered in 2013, largely due to a clear out of the balance sheets of two banks. Return on equity fell to -0.2%. Still, Intesa Sanpaolo, the fifth largest bank in the country by assets, expects growth in the major banking business of loans and deposits.
