Archive of Journal - Financing
Financing – scientific magazine for economy
ISSUE 2020, No. 4, Article 5, Year of publication: 12, December, 2021
The impact of the COVID-19 pandemic on the economic growth of the Republic of Srpska economy
Nevena Pašalić, MSc*
*Ministry of Finance of Republic of Srpska
In 2020, as a consequence of the global pandemic, the Republic of Srpska was hit by the biggest recession in the last 25 years, and the real GDP rate fell by 2.8%. The main manifestations of such a crisis are the decline in consumption, investment and demand from abroad. Taking into account the data from the fourth quarter of 2020 and the first four months of 2021, the economy of Republika Srpska is still showing a significant recovery. In the first four months of 2021, exports of goods had a significant growth of as much as 24.9%, and imports of goods had a nominal growth of about 15%. The coverage of exports by imports amounted to 81.9%. In the mentioned period, the average growth rate of industrial production was 14.3%. An investment cycle worth several billion BAM has been announced in Republika Srpska by the end of the year. The main risks to further recovery are uncertainty about the intensity and duration of the coronavirus pandemic (COVID-19), disruption of production and supply chains, declining global economic activity and tightening conditions in international financial markets, and capital outflows from developing countries. The aim of the research is to find out about the impact of the pandemic on the economic growth of the Republic of Srpska and the forecast for economic recovery. The following scientific research methods were used in the research: deductive method, method of analysis, method of synthesis and method of comparison.
Keywords: COVID-19, ekonomic growth, Republic of Srpska