Page 76 - bne IntelliNews Southeastern Europe Outlook 2025

history. Higher end hotels are also opening, with recent announcements from Hyatt Hotels and MGallery Hotel.
Overall, tourism is seen as one of the main drivers for the Albanian economy, along with domestic consumption and construction.
5.2 Real Economy – Bosnia & Herzegovina
5.2.1 Retail
Bosnia & Herzegovina’s retail sales increased by a real 0.7% y/y in October, after expanding by 1.7% y/y the month before, as the performance of all sectors remained positive, according to the latest available statistics office data.
Retail trade except trade-in motor fuels grew by 1.7% y/y in October, after going up by 3% y/y in the previous month. Retail trade in food, beverages and tobacco expanded by 6.1% y/y, after rising by 3% y/y the month before. Trade in non-food products decreased by 0.3% y/y, after climbing by 3% y/y in September. Trade in motor fuels decreased by 3.7% y/y, after going down by 4.2% y/y in September.
In the first ten months of 2024, retail sales climbed by 7.5% y/y, with sales of food, beverages and tobacco rising by 4.9% y/y. Trade in non-food products increased by 9.2% y/y, while trade in motor fuels expanded by 6.3% y/y.
On the corporate side, German discounter Lidl, part of Schwarz group, started construction works on three more stores in Bosnia, as part of its ongoing plan to launch retail operations in the country and reach between 70 and 80 stores within a decade.
Lidl kicked off work on its first logistics centre in Bosnia in May 2024 – a €100mn project developed in Lepenica which is a key step in launching retail operations in the country.
The German retailer has been considering entering Bosnia’s market since 2020 and registered its subsidiary in the country in 2021.
5.2.2 Banks
Commercial banks in Bosnia expect that the credit demand in the country will continue expanding in 2025, in line with the trend from the third quarter of 2024, according to a central bank survey for Q3. The credit demand of companies continued growth from the previous two quarters but at a slower pace. On the other hand, consumers have increased demand for mortgage loans.
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