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Almir Alihodžić, Dzenan Donlagi
0 2014.

Effects of Foreign Trade on Budget Equilibrium - Case Study of Bosnia And Herzegovina

The analysis of economic trends in BH in 2012 recorded further weakening of economic activity. Primarily, this is a result of stagnant economies of the EU and the region. In the first trimester of 2013 year, exports grew in real terms by 19% and imports by 13%, which led to the real growth in the trade deficit to about 7%. The given deficit significantly reduced the earlier estimate of economic growth for the first trimester in which the strong export growth, coupled with an increase in industrial production represented a very important step forward compared to the previous year. The main objective of this paper is to discuss the global financial crisis, the movement of the budget deficit in BH for the period 200 - 2012, as well as monitor the constraints set by the Maastricht Treaty that the amount of the budget deficit should not exceed 3% of the GDP and the interdependence of imports of goods and nominal GDP.


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