Bosnia 2008 growth estimated at 5.42 pct

Bosnia’s economic growth in 2008 was 5.42 percent, slightly less than the earlier projected 6 percent, according to preliminary figures released by the state statistics agency on Tuesday.

‘Nominal gross domestic product in 2008 was 24.716 million Bosnian marka ($18 million), while the real growth was 5.42 percent,’ agency head Zdenko Milinovic told a news conference.

Bosnia’s central bank had projected a 6 percent economic growth in 2008 but later revised it down to 5.5 percent.

Milinovic said that processing industries and trade were the main contributors to GDP, accounting for 15.1 and 13.6 percent respectively. Public administration and real estate made up 10 and 9.5 percent respectively.

GDP per capita amounted to 6,435 marka, Milinovic said.

Like many other East European countries, Bosnia has been forced to take harsh austerity measures to respond to the global economic downturn.

The International  Monetary Fund (IMF), which this month approved a $1.57 billion stand by deal for the Balkan country, expects a three percent economic contraction this year and zero growth in 2010.

Bosnia is made up of two highly autonomous regions, the Serb Republic and the Muslim-Croat federation, which co-exist under a weak central government.

($1=1.37 Bosnian marka)