Slight Improvement in Current Account Deficit

Regarding the release of the Balance of Payments statistics for the first quarter of 2003, the Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Peter Nicholl welcomed the six percent improvement (i.e. reduction) in the negative Balance of Trade. The current account deficit in the first quarter of this year was still large at 839 million KM. However, Governor Nicholl stated that this was still five percent improvement compared to the first quarter of 2002.

236 million KM fall in foreign reserves was noted in the first quarter of 2003, but the level of reserves in the second quarter to date is much more stable.

The improvement in the Balance of Trade in goods in the first quarter 2003 compared with the corresponding quarter of the previous year reflected an eight percent boost in exports combined with a fall of two percent in imports, both good signs of improving health in BH Balance of Payments.

Another highlight in the latest Balance of Payments, the Governor said, was continued strong growth in foreign direct investment in BiH, which increased 29 percent compared to the corresponding period of 2002, which indicates growing of foreign investor interest in this country.