Conference „World in 2023“ Held: From the Year of Change into the Year of Hope

Today, on 30 January 2023, the conference „World in 2023“ was held in the organisation of Color Media Communications, with the partnership of the Central Bank of Bosnia and Herzegovina (CBBH), and the support of the Delegation of the European Union in BH and British Embassy in BH.

The conference is one of the longest lasting conferences of Color Media Communications, and it has become recognized in the countries of the region as an event contributing by discussions on business, political and social environment, to better understanding of challenges present in the economy of Bosnia and Herzegovina, and offering some recommendations in that respect.

Opening the conference, Governor of the CBBH, Senad Softić, Ph.D., said that according to the CBBH projections, in 2023,Bosnia and Herzegovina will face slowdown of economic activities, but not recession. Also, in the next two years, inflationary pressures are expected to slow down. The interest rates of the European Central Bank and its general monetary policy affect the CBBH. The largest part of the banking sector is connected with banks from the European Monetary Union in terms of capital, which affects banks' policies in BH. However, banks in BH have relied for years on the domestic sources of funding, being mainly with short maturities currently. Demand for loans is still low, with banks estimating the creditworthiness of their customers quite strictly. „In such circumstances, transmission mechanism of the ECB interest rates on the domestic financial system is quite weak“, said Governor Softić.

He added that only stable CBBH, which adheres to the currency board principles, can guarantee macroeconomic stability of BH. „Answer to the question how to accelerate growth in BH must not be searched in the change of currency board but in accelerating structural reforms, and cooperation with international financial institutions and other international bodies.“, Governor Softić said, adding that currency board is not an obstacle to faster and stronger accession to the EU.

„The path to the EU membership is long. However, a candidate status is certainly a strong motive to accelerate the necessary reforms and improve the standard of citizens. Economic growth is possible only with significant investment, private and public, domestic and foreign, the attraction of which requires a favourable environment“, Governor said.

Head of the European Union Delegation in BH and the European Union Special Representative in BH, H.E. Johann Sattler, in his introduction,pointed out the need for higher investments in BH, which require, first of all, a favourable environment, rule of law, and political stability. British ambassador in BH, H.E. Julian Reilly also addressed the participants of the conference, pointing out the necessity of implementing social and economic reforms in BH, stressing that Bosnia and Herzegovina has a large economic potential which should be used, while Resident Representative of the UNDP in BH, H.E. Steliana Nedera said that UNDP supports the policy which includes investments, safety and innovations.

Director of company Color Media Communications, Mr. Robert Čoban also addressed the participants of the conference, pointing out the significance of today's conference and discussions of representatives of international community with domestic officials and experts for future cooperation.

The conference gathered the leading economic experts, business people and holders of the most significant public functions and representatives of diplomatic community in BH, with the aim to analyse, through a constructive dialogue of all the participants, economic environment, investment climate, reform and legislation implementation and also measures to be taken by BH.

The partner institution of the conference was the Central Bank of Bosnia and Herzegovina, it was supported by the British Embassy in Bosnia and Herzegovina and the EU Delegation in Bosnia and Herzegovina, and partners: UNDP, Mastercard, Kakanj Cement HeidelbergCement Group, Sparkasse banka, Adriatic Metals, ASA Banka, company Violeta; Courtyard by Marriott.