1. 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

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 balanced economic development
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 20058
Source: Report on implementation of Action plan of MTDS for period August 2003-March 2005

9. IMPLEMENTATION BY GOVERNMENTS9
Source: Report on implementation of Action plan of MTDS for period August 2003-March 2005

10. IMPLEMENTATION BY PARLIAMENTS10
Source: Report on implementation of Action plan of MTDS for period August 2003-March 2005

11. IMPLEMENTATION OF MACROECONOMIC FRAMEWORK AND PRIVATE SECTOR GROWTH MEASURES11
Source: Report on implementation of Action plan of MTDS for period August 2003-March 2005

12. PERCENTAGE OF SUCCESS IN IMPLEMENTATION OF MEASURES IN AREA OF SECTORAL PRIORITIES12
Source: Report on implementation of Action plan of MTDS for period August 2003-March 2005

13. ECONOMIC TRENDS

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

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 16 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, 17

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

19. CURRENT ACCOUNT DEFICIT19
Source: IMF Staff Report, Article IV Discussion Paper

20. INTEREST RATES DECLINE20
Source: Central Bank of Bosnia and Herzegovina

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

22. CORPORATE / HOUSEHOLD LENDING22
Source: Central Bank of Bosnia and Herzegovina

23. FOREIGN DIRECT INVESTMENT GROWTH23
Source: Central Bank of Bosnia and Herzegovina

24. USAGE OF RAILWAY TRANSPORT IN BIH24
Source: Statistical office FBiH, Statistical office RS

25. EXPORT / IMPORT RATE OF GROWTH25
Source: Central Bank of Bosnia and Herzegovina

26. INDUSTRIAL PRODUCTION GROWTH26
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 GDP32
Source: IMF Staff Report for 2005, Article IV Discussion Paper

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