But the impact of lower real incomes is gradually building. We expect it to become the dominant source of drag on the economy by 2017. As their wealth and incomes decline, households will likely restrain their spending and we will see lower, but still positive, consumption growth. How is the economy adapting?
In 1999 for example, direct foreign investment was 50% higher than in 1998 and though we do not yet have figures for 2000, I am sure it has risen strongly again. But while this growth rate sounds spectacular, it is from a very low base. Direct foreign investment into BH in 1999 is estimated to have been KM 170 million.