The Deputy Director of the International Monetary Fund (IMF) Nemat Shafik concluded her visit to the region with a visit to Sarajevo on Wednesday, during which she also stayed in Croatia. The IMF announced on this occasion that she is encouraged by the prospects for economic recovery in the region.
Recalling that she discussed the Croatian growth model with the Prime Minister of Croatia Zoran Milanović in the context of existing challenges from the environment, the statement published on the IMF’s website quotes Nemat Shafik as saying that Croatia has prospects to strengthen its overall position with the upcoming accession to the European Union.
“The continuation of cautious and credible fiscal consolidation, the expansion and implementation of the government’s structural reform program with a priority on increasing labor market participation and improving the business climate will put Croatia in a strong position to make the most of the upcoming EU accession,” emphasized Shafik.
Commenting on the discussions she had with government representatives in Bosnia and Herzegovina, the Deputy Director of the IMF assessed that further fiscal consolidation is an important task for that country. She called for persistence in implementing reforms, which should help improve economic growth and establish a vigorous private sector that can provide jobs and reduce the “unacceptably high” unemployment in Bosnia and Herzegovina.
Depending on the methodology applied in assessments, the unemployment rate in Bosnia and Herzegovina ranges between 28 and 40 percent.
