Page 87 - SE Outlook Regions 2023

Bosnia’s processing industry mainly depends on exports, which could
be lowered due to the economic crisis caused by the Russian war in
Ukraine.

Bosnia’s coal mining sector remained in crisis in 2022 with miners
striking for unpaid wages.

Meanwhile, tourism has been identified as a sector with the potential to
become of key importance for the economy if it manages to attract
enough investment.

Tourism is becoming increasingly important for Bosnia’s economy and
is attracting attention from international institutions and investors. In
November 2022, Bosna Bank International (BBI) and USAID joined
forces to support the development of local tourism, providing funds to
SMEs.

The cooperation with USAID should secure easier access to financing
to SMEs working in the tourism industry and will help them increase
revenues and open new jobs.

According to the latest available statistics office data, the number of
foreign tourists visiting Bosnia jumped by 72.4% y/y in September to
103,219. The total number of tourists increased by 51.5% y/y to
158,370 in September.

3.3 Real economy - Bulgaria

3.3.1 Retail

Bulgaria’s retail trade was on an upward trend in most of 2022 despite
the economic crisis and surging inflation. It started declining in the last
months of the year, but businesspeople are optimistic for the coming
months.

Bulgaria’s seasonally adjusted retail sales moved up by 0.3% month on
month in September, after rising by 1% m/m in August, according to the
latest available statistics office data. Year on year, retail sales expanded
by 2.1%, rising by the same margin as in August.

Retail sales of food, beverages and tobacco went down 2.8% y/y in
September, after dropping 3.9% y/y in August. Sales of non-food
products (except fuel) expanded 3.3% y/y, after increasing by 4.4% y/y
in August. Automotive fuel sales climbed by 8.8% y/y in September,
after rising by 7.7% y/y in the previous month.

According to the business climate indicator, retail trade increased by 8.7
points m/m in November 2022.

One investment that should be completed in 2023 is the retail park in
the northeastern city of Dobrich that is being built by the Bulgarian
entrepreneur Marian Kolev, majority owner of toy retailer Hippoland.
The retail park will spread on 37,000 sq m at the location of the city's

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