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Presentation by Mr. Zlatko Hurtic Adviser of Chairman of B&H Council of Ministers

BOSNIA AND HERZEGOVINA. ANNUAL PROGRESS REPORT ON IMPLEMENTATION OF MID-TERM DEVELOPMENT STRATEGY (PRSP). Presentation by Mr. Zlatko Hurtic Adviser of Chairman of B&H Council of Ministers Thessalonica, May 27-28, 2005. PROCESS.

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Presentation by Mr. Zlatko Hurtic Adviser of Chairman of B&H Council of Ministers

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  1. BOSNIA AND HERZEGOVINA ANNUAL PROGRESS REPORT ON IMPLEMENTATION OF MID-TERM DEVELOPMENT STRATEGY (PRSP) Presentation by Mr. Zlatko HurticAdviser of Chairman of B&H Council of Ministers Thessalonica, May 27-28, 2005

  2. PROCESS •Mid-term Development Strategy approved in March 2004 by governments and parliaments • Supported by Civil Society 2

  3. GENERAL GOALS • to create conditions for sustainable and balancedeconomicdevelopment • to speed up EU integration 3

  4. SPECIFIC TARGETS • to lower unemployment • to decerease level of poverty 4

  5. MAIN PRIORITIES • to decerease public expenditure level in GDP • to increase private sector share in GDP 5

  6. IMPLEMENTATION MECHANISM Economic Policy Planning and Monitoring Unit (EPPU) has been established to: monitor implementation of measures from Action Plan monitor indicators (MDGs) continue with economic research prepare six-month and annual reports on implementation of B&H MTDS 6

  7. PROGRESS REPORT

  8. STATUS OF IMPLEMENTATION for period August 2003 – April 2005 8 Source: Report on implementation of Action plan of MTDS 2004-2007 for period August 2003-March 2005

  9. IMPLEMENTATION BY GOVERNMENTS 9 Source: Report on implementation of Action plan of MTDS 2004-2007 for period August 2003-March 2005

  10. IMPLEMENTATION BY PARLIAMENTS 10 Source: Report on implementation of Action plan of MTDS 2004-2007 for period August 2003-March 2005

  11. IMPLEMENTATION OF MACROECONOMIC FRAMEWORK AND PRIVATE SECTOR GROWTH MEASURES 11 Source: Report on implementation of Action plan of MTDS 2004-2007 for period August 2003-March 2005

  12. PERCENTAGE OF SUCCESS IN IMPLEMENTATION OF MEASURES IN AREA OF SECTORAL PRIORITIES 12 Source: Report on implementation of Action plan of MTDS 2004-2007 for period August 2003-March 2005

  13. ECONOMIC TRENDS

  14. ECONOMIC GROWTHOF B&H IN COMPARISON TO THE REGION IN 2004 * Serbia and Montenegro 14 Source: IMF World Economic and Financial Surveys, World Economic Outlook, April 2005

  15. REGIONAL CPI COMPARISON Source: IMF World Economic and Financial Surveys, World Economic Outlook, April 2005, IMF Staff Report, Article IV Discussion Paper 15

  16. FISCAL DEFICIT Source: Medium Term Development Strategy IMF Staff Report, Article IV Discussion Paper 16

  17. WAGE BILL CUT Source: Ministry of Finance and Treasury of BIH, FBiH and RS Ministries of Finance, IMF Staff Report, Article IV Discussion Paper, FBiH and RS Medium Term Expenditure Framework, 2005-2007 17

  18. DEFENSE EXPENDITURES CUT 18 Source: FBiH and RS Medium Term Expenditure Framework, 2005-2007

  19. CURRENT ACCOUNT DEFICIT 19 Source: IMF Staff Report, Article IV Discussion Paper

  20. INTEREST RATES DECLINE 20 Source: Central Bank of Bosnia and Herzegovina

  21. BANKS DEPOSIT GROWTH 21 Source: Central Bank of Bosnia and Herzegovina

  22. CORPORATE / HOUSEHOLD LENDING 22 Source: Central Bank of Bosnia and Herzegovina

  23. FOREIGN DIRECT INVESTMENT GROWTH 23 Source: Central Bank of Bosnia and Herzegovina

  24. USAGE OF RAILWAY TRANSPORT IN BIH 24 Source: Statistical office FBiH, Statistical office RS

  25. EXPORT / IMPORT RATE OF GROWTH 25 Source: Central Bank of Bosnia and Herzegovina

  26. INDUSTRIAL PRODUCTIONGROWTH 26 Source: Central Bank of Bosnia and Herzegovina, FBiH and RS Institute of Statistics

  27. EMPLOYED AND UNEMPLOYED (including grey economy) in % 27 Source: Living in BiH, Wave 4

  28. WAGES 28 Source: BiH Statistics Agency, FBiH and RS Institute of Statistics

  29. PENSIONS 29 Source: Central Bank of Bosnia and Herzegovina, FBiH and RS Institute of Statistics

  30. POVERTY DECLINES 30 Source: BiH Statistics Agency, FBiH and RS Institute of Statistics, EPPU

  31. Job loss: 20,700 • Job creation: 19,900 • Out of poverty: 69,000 31

  32. FOREIGN AID SHARE IN GDP 32 Source: IMF Staff Report for 2005, Article IV Discussion Paper

  33. PRIORITIES FOR 2005 •VAT introduction •Corporate restructuring 33

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