Preliminary communication
CHARACTERISTICS OF PERSONAL CONSUMPTION IN BOSNIA AND HERZEGOVINA
Jelena Jurić
orcid.org/0000-0003-3733-789X
; University of Mostar Faculty of Economics, Bosnia and Herzegovina
Abstract
Personal consumption represents one of the most important components of aggregate demand. Calculations of GDP by expenditure approach includes consumption that makes the biggest GDP component in the most countries. As a part of aggregate demand and GDP consumption has multiplier effects on employment, investments and savings. Financial crisis that hit the world economy in 2007-2008 has caused consumption decrease that had negative, short- or long-term, consequences. For that reason there is consensus about the need of consumption increase and re-growth of world economy. bAccording to IMF and EUROSTAT data Bosnia and Herzegovina is at the bottom of the European countries by consumption and standard of living, components that show slow improvement due to significant income decrease, high unemployment rate and small FDIs.The aim of this work is to show characteristics of personal consumption in Bosnia and Herzegovina regarding changes of personal consumption values and its share in GDP. This paper will give insight into changes of consumption values and its impacts on GDP in the period 2007-2015 with the reference to the countries of region and EU.
Keywords
consumption; GDP; expenditure approach
Hrčak ID:
187414
URI
Publication date:
9.10.2017.
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