The Central Bank of Bosnia and Herzegovina has raised its estimate for annual real gross domestic product growth in the second quarter of 2026 by 0.2 percentage points to 2.2%, while forecasting 2.3% growth in the third quarter. The outlook continues to point to moderate economic activity, with risks from the international environment and uncertainty over external demand. The central bank significantly lowered its third quarter inflation nowcast to 3.7% for headline inflation and 4.2% for core inflation. The revision reflects an unexpectedly sharp slowdown in official inflation in June and July and weaker transmission of higher transport and utility costs to other prices. Headline and core inflation are both forecast at 4.1% in the fourth quarter as external energy pressures persist and higher international food prices reach the domestic market with a lag.
2026-09-18Central Bank of Bosnia and Herzegovina
Central Bank of Bosnia and Herzegovina raises second quarter growth estimate and cuts third quarter inflation nowcast
The Central Bank of Bosnia and Herzegovina estimates annual real GDP growth of 2.2% in the second quarter and 2.3% in the third quarter of 2026. It cut its third quarter inflation nowcast to 3.7% for headline inflation and 4.2% for core inflation, but expects both measures to reach 4.1% in the fourth quarter.