Page 75 - SE Outlook Regions 2022

Compared to the base year (2015), the real index of trade in food
products in October 2021 was growth of 39.1%, while trade in non-food
products grew by 58.0%. Turnover from motor retail fuels grew by
18.4%.

The DEP estimates an average growth rate of private consumption of
about 2% over the next three years (2021: 1.7%, 2022: 1.9%, 2023:
2.1%).

Russian discounter Mere is expected to enter the Bosnian market in
2022, with plans to initially open in Ilidza, Sarajevo, followed by the
opening of stores in other amor cities such as Mostar, Banja Luka,
Tuzla, Zenica, and Bijeljina. German discounter Lidl is also understood
to be preparing for a Bosnian launch.

Currently, the market leaders are local Bingo and Croatia’s Konzum. In
2021, the European Bank for Reconstruction and Development
announced plans to extend a €20mn loan to Bingo to develop its
Sarajevo shopping centre make further investments into its retail
network.

3.2.2 Banks

The banking sector is well capitalised and generates significant profits
from year to year. In the first six months of 2021, banks in the Bosnian
Federation made a net profit of BAM150mn, and in the Republika
Srpska in the amount of BAM64.4mn.

The DEP estimates the growth of credit activity in Bosnia at 2.0% in
2021, and in 2022 there could be a moderate growth of credit activity
with a rate of 3.2%.

75 SE Outlook 2022 www.intellinews.com