ECONOMY

Job growth in Bosnia due to gray economy

SARAJEVO (SeeNews) – Although the number of workers in Bosnia has increased in the past few years, spurred by the country’s growing economy, most jobs have been created in the so-called «informal sector,» that is, the shadow economy, the World Bank said in a report published yesterday. «High unemployment and a large and growing informal sector remain key challenges that affect everybody in Bosnia and Herzegovina,» Dirk Reinermann, the World Bank country manager in Bosnia, said in a statement. According to estimates by the top international institution in Bosnia, the Office of the High Representative, at least 40 percent of Bosnian companies operate in the shadow economy. The World Bank study showed that the official unemployment rate has remained high and has even increased for young people. «One reason for that is the fact that wages in Bosnia are high relative to productivity compared with neighboring countries,» it said.