Regular Economic Report - Q2
Regular economic report April - June 2021
The second economic report of the FNF Foundation brings a chronology of economic trends in 2021. It is evident that there has been an economic recovery of Bosnia and Herzegovina, which can be seen through the growth of industrial production, exports, increased foreign demand, but also exceptional circumstances related to tourism - successful tourist season, a large number of newly established airlines abroad and the like.
The focus of the research within the report is precisely on exports. The results of the research show the strategic orientation of BiH companies towards exports. The reasons for this are the insufficient size of the domestic market and the weak purchasing power of the domestic population. Quite simply, exports only enable the survival of these companies. Most respondents state that export space is far greater than their current production capacity, but that a lack of political understanding, a lack of labour in the country, poor funding conditions, and problems in some sectors when it comes to procurement of raw materials and raw materials hamper their decisions to move. in new investment projects aimed at expanding production and introducing new products to the offer.
Exports are the key to the survival of a large number of BiH. company. The potential of the global market is huge, but the competition is just as great. This means that it is necessary to constantly work on increasing productivity, through the introduction of new technologies, digitalization of all processes within the company, and continuous investment in human resource development. All this requires financing, and relying on classic bank financing is not enough. Activation of the capital market, the introduction of guarantee schemes, which will be intended for technological improvement of our companies and connection with the education system, is necessary for our export companies to realise the full potential of the global market.
The Report is currently available in local languages only.
Regular economic report April - June