THE REPUBLIC OF SRPSKA MINISTRY OF FINANCE MACROECONOMIC INDICATORS OF

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1 THE REPUBLIC OF SRPSKA MINISTRY OF FINANCE MACROECONOMIC INDICATORS OF THE REPUBLIC OF SRPSKA Banja Luka, May 2018

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3 Content: I. CURRENT MACROECONOMIC AND FISCAL INDICATORS Macroeconomic Indicators Economic activity Inflation External trade Labor market Banking Sector Fiscal indicators Fiscal performance Total and public debt II. MACROECONOMIC INDICATORS - TABLES AND GRAPHICS III. FISCAL INDICATORS - TABLES AND GRAPHICS

4 List of Abbreviations: CBBiH The Central Bank of Bosnia and Herzegovina CEFTA Central European Free Trade Agreement CPI Consumer Price Index EC European Commission ERP RS Economic Reforms Programme of The Republic of Srpska ESA 2010 European Standard Accounts, 2010(ESA) E U countries of the European Union Е urostat Statistical Office of the European Union FBiH Federation of Bosnia and Herzegovina GDP Gross domestic product GFS Government Finance Statistics GFSM Government Finance Statistics Manual GVA Gross Value Added IDB The Republic of Srpska Investment-Development Bank IMF International Monetary Fund KD Classification of activities KM/BAM Currency symbol of convertible mark MIG Nomenclature of the main industrial groups according to the economic purpose, ie the final consumption of the product n/a Not available NIP Nomenclature of industrial products p.p. percentage point PDIF RS Pension and Disability Insurance Fund of the Republic of Srpska RS TheRepublic of Srpska RSIS The Republic of Srpska Institute of Statistics 4

5 I. CURRENT MACROECONOMIC AND FISCAL INDICATORS 1.1 Macroeconomic Indicators Economic activity Gross Domestic Product (GDP) According to projections of the RS Institute of Statistics, the quarterly GDP of the RS, in 2017, compared to the same quarter of 2016, had positive growth rates QI = 2.7%, QII = 2.8%, QIII = 3.3% and QIV = 3.1%, which is on average 3.0%. When observing GDP growth in 2017 by sectors of the economy (i.e., activity classification), the largest contribution to GDP growth was provided by the following sectors of the economy: Wholesale and retail trade; Repair of motor vehicles, motorcycles; Transport and storage; Accommodation, food preparation and catering services, hospitality and catering; and Manufacturing. On the other hand, sector for Agriculture, forestry and fishing registered negative rates in all four quarters. Real GDP growth was achieved in 14 quarters, consecutively. Period of time Quarterly GDP, real growth rates, %, (Q / Q- IV) A B, C,D,E F Agriculture, forestry and fishing G,H,I,J,K,L, M,N,O,P,Q, R,S, Fisim Industry Construction Services Net taxes (hous. KM) GROSS DOMESTIC PRODUCT 2017 Q I -4,2 4,5 3,6 14,4 3,1 2,7 Q II -5,8 4,7 5,1 13,7 3,4 2,8 Q III -6,0 1,7 6,4 22,3 4,5 3,3 Q IV -6,2 2,2 5,7 21,9 3,7 3, Ø Q I-IV -5,6 3,3 5,2 18,1 3,7 3,0 Industry Total volume of industrial production in the Republic of Srpska in April 2018 was 1.1% lower than it was in March This was caused by decreas in Energy production (6.7%). When observing industrial production by its divisions, decrease in the volume was recorded only in Manufacturing (5.4%), which was mainly due to the decrease in Coke and refined petroleum production (75.6%). All other areas recorded an increase in the production volume. When we compare industrial production annually, April 2018 to April 2017, we conclude that it grew by 3.7%. This annual growth was mainly due to the increas in Energy production. Here we might see how Energy production is important for the overall industry, as its increased production led to the overall industry growth. The highest production increase by 52.1% was recorded in the section Electricity, gas, steam and air conditioning supply. Comparing the period January-April 2018 to the same period of 2017, industrial production recorded an average growth rate of 4.2%. The 5

6 increase in production in the above mentioned period was largely due to the increase in energy production by 18.6%, and increase in production of Durable consumer goods by 17.7%. When we compare growth rates through sections and divisions the largest contribution to the total volume of industrial production was recorded in the area Electricity, gas, steam and air conditioning supply, where the growth was 22.1%. In the area Mining and quarrying, a decrease in production of 6.7% was recorded, that led to the decreased production in the field of Coal mining and lignite (brown coal) of 3.4%. In the area of Manufacturing industry, in the observed period, production decreased by 2.2%, which was mainly due to the decrease in production of finished metal products (21.5%), with the except machinery and equipment. On the other hand, the Production of coke and refined petroleum products recorded a significant increase by 31.1%. INDUSTRY TOTAL BY MIGs 2010 Monthly The next chart shows the comparison of the Republic of Srpska with countries of the region. Due to the specificity in publishing data of the volume of industrial production, the chart shows the latest available data (March 2018 compared to March 2017, and April 2018 compared to April 2017). rate IV 2018 III 2018 Annual rate IV 2018 IV 2017 Average annual rate Structure I-IV 2018 I-IV ,1 3,7 4,2 100,0 AI Intermediate goods 0,7-12,0-3,1 32,6 AЕ Energy -6,7 19,1 18,6 36,0 BВ Capital goods 47,2 14,1-29,7 7,1 CD Durable consumer goods 9,5 27,8 17,7 3,3 CN Non durable consumer goods -2,4-8,2-1,9 21,2 B MINING AND QUARRYING 6,4 2,8-6,7 12,1 C MANUFACTURING -5,4-15,1-2,2 63,2 D Rates of change in industrial production, in% BY SECTION AND DIVISION (KD) ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY 10,2 52,1 22,1 24, Inflation Inflation in 2018 remained stable. Prices of products and services used for personal consumption in the Republic of Srpska, measured by the consumer price index, in April 2018, were 1.1% lower on average compared to the previous month, while compared to April 2017, total consumer price index was on average 1.1% higher. Seven out of twelve main divisions of products and services recorded higher prices, four of them had lower prices, while prices in one division remained unchanged on average Monthly index м/м-1 Consumer Price Index Annual index м/м-12 I 100,2 99,7 Average annual index Cumulative index II 101,2 100,8 100,2 101,3 III 100,4 101,0 100,5 101,7 IV 98,9 101,1 100,7 100,7 On monthly level, in April 2018, the highest increase in prices was recorded in division Transport (0.7%) due to higher fuel price of 1.7%, then in division Recreation and culture (0.6%) due to higher price in the group Books and school textbooks of 2.9%, as well as in the division Other goods and services (0.4%) caused by higher prices 6

7 in the group of products for personal hygiene of 1.0%. In Health and Furniture division, there was a growth of 0.3% due to higher purchase prices of individual medicines of 0.5% in the group Pharmaceutical products, ie higher purchase prices of individual consumer goods for household maintenance of 0.8% in the group Products for regular home maintenance. The lowest prices in April 2018 were recorded in Housing division (8.9%) caused by decreased prices in the group Electricity, gas and other fuels of 11.7% (electricity calculated at lower so-called summer tariff from April 1), followed by division Alcoholic beverages and tobacco with lower price of 0.3%, due to lower (action) price in the group Alcoholic beverages by 1.0%. On annual basis, compared to April 2017, prices increased by 1.1%. The highest price increase was recorded in division Alcoholic beverages and tobacco (6.9%) which was caused by an increase in excises on tobacco and tobacco products from January 1, 2018, as well as the increase in the cigarettes of certain producers since March 1 of the current year. The second highest price increase when compared to April 2017 (6.7%) was in the division of Transport due to the increase in purchase prices of fuels. (In Transport division on an annual basis, price increases were also registered within the group Transport services of 4.1%, as well as within the group Purchase of motorcycles, 0.5%, with the participation of these groups in the total index significantly less than a group of Fuels and lubricants.) In Health division, annual price index rose by 2.3%, due to higher prices of certain medicines in the group Pharmaceuticals products of 3.7%, followed by Food and non-alcoholic beverages with 1.3% increase due to higher purchase prices of seasonal fruits and vegetables. Therefore, the following growth rates were recorded: 9.9% in Fruit group; 3.8% - Vegetables; 3.4% - Oil and fats; 3.3% - Fresh and frozen fish; and 1.0% - Fresh meat and cured meat products. Annual increase in prices was also recorded within the division Recreation and culture (0.7%). The highest growth rate was recorded in the group Veterinary services (11.6%), followed by the group Package arrangements (7.1%). The group for Media and recording had a growth rate equal to 2.5%, while Housing division rose by 0.6%, with the greatest price impact by groups Liquid fuels (16.6%), Solid fuel (1.2%), and municipal services Garbage collection (1.8%). The lowest prices annually were recorded in Clothing and footwear section (12.8%), mostly due to seasonal discounts during the year in both groups, Clothing 11.1% and Footwear 16.1%, followed by Furniture and furnishings section (0.5%) in which the lower prices (also various types of discounts) were recorded in groups of Dishes and Accessories for households of 7.5%, Carpets and other floor coverings of 2.7%. The next graph shows the comparison of the Republic of Srpska with neighboring countries, EU and EA, taking into account annual inflation rates (April 2018 compared to April 2017). 7

8 1.1.3 External trade During the period January April 2018, continued increase in exports and imports from the previous year resulted in a growth of 10.4% in the volume of external trade. Coverage of imports with exports was equal to 75.1%, while the external trade deficit amounted to BAM million. In the period January April 2018, the value of exports was BAM 1,184 million, which represented an increase of 13.0% compared to the same period of the previous year. During the same period, the value of import was BAM 1,577.4 million, which represented an increase of 8.5% compared to the same period of the previous year. The growth in exports in the period January-April 2018 was mainly due to the growth in exports of the following products: Electrical energy, Artificial corundum, whether or not chemically defined; aluminium oxide; aluminium hydroxide Parts of footwear and Wood sawn or chipped lengthwise, sliced or peeled. In terms of the geographical distribution of external trade of the Republic of Srpska, in the period January April 2018, the highest value of export was export to Italy, with BAM 173 million or 14.6%, followed by Croatia, with BAM 154 million or 13.0% of the total realised export. During the same period, the highest value of import was import form Serbia, with BAM 264 million or 16.7%, followed by Russia, with BAM 186 million or 11.8% of the total realised import Labor market According to the Labor Force Survey, the unemployment rate in 2017 was 21%. Labor market indicators improved and the unemployment rate decreased by 3.8% compared to the same period of the previous year. The employment rate increased by 37.3% compared to In 2017, there were 260,608 employed persons in the Republic of Srpska, which is 2.9% more than in Although there is still no data available on the number of employed persons for year 2018, it is expected that this trend will continue. According to the data of the Employment Service of the Republic of Srpska, at the end of April 2018 the number of unemployed persons actively 8

9 seeking for employment amounted to 110,619, which at the monthly level represents a decrease of 1,714 persons. With a continuous reduction in the number of unemployed persons, annually, the number of unemployed persons decreased by 10,2%, or by 12,519 persons. The average number of unemployed persons in the period January-April 2018 equals to 112,685. In April 2018, the number of persons that have been removed from the register of unemployed persons to employment persons amounted to 3,766, which is an increase of 26.1% compared to the same month of the previous year. Pension Average pension paid in April 2018 was 4.9% higher than in April 2017 and was equal to BAM 358. The average paid pension was 42.6% of the net wage for April. At the same time, the number of pensioners in April was 259,387 and increased by 3,130 users compared to the same month of the previous year, or 678 users compared to the previous month. For the period January-April 2018, the average paid pension was BAM 353. Wages Average net wage paid in April 2018 was BAM 840 and while nominal value remained the same, observed real value was 1.1% higher compared to the previous month. Compared to the previous year, average net wage increased by 2.2% in nominal, and 1.1% in real value. The average wage for the period January-April 2018 was BAM Banking Sector Deposits are the primary source of financing for the banking sector and therefore, the volume of business, planning and management business policies of each bank are directly dependent on the level, structure and maturity of the deposits. Deposits in the banking sector on December 31, 2017, amounted to BAM 5,381.3 million with a growth rate of 7%, and they were higher for BAM million compared to the end of The most significant type of deposits in RS banking sector are household deposits with a share of 57% in total deposits. 9

10 Household deposits are the most stable deposits with a constant growth trend. On December 31, 2017, they amounted to BAM 3,082.6 million with a growth rate of 10% and compared to the end of 2016 they have the most significant nominal growth of BAM million. In the analysis of the structure of total loans on December 31, 2017, it is evident that the lending activity of the banking sector is increasing compared to the end of We can conclude that lending is directed towards users of credit from the household sector, the sector of private companies and public sector and the stateowned enterprises. Loans to households had a share of 45% of total loans and amounted to BAM 2,182.6 million. Loans to households registered significant nominal growth of BAM million or nominal growth rate of 7% when compared to the end of Household savings amounted to BAM 2,189.1 million on December 31, 2017 and recorded growth rate of 7%. Compared to the end of 2016 household savings in 2017 were higher for BAM million. Since the end of 2008 when the savings amounted to BAM 773 million until December 31, 2017 savings rose by 183%. Foreign currency savings have the dominant share in household savings. Foreign currency savings amounted to BAM 1,508.8 million, which is equal to 69% of total savings. Foreign currency savings achieved a growth of 8% or a nominal increase of BAM million, compared to December 31, Savings in Convertible Marks amounted to BAM million and make 31% of total savings. Savings in Convertible Marks increased by 6.5% compared to the end of Total savings of household, including savings on sight of household, on December 31, 2017 amounted to BAM 2,908.6 million and increased by 10% compared to the end of Fiscal indicators Fiscal performance According to preliminary data, in the period January-March 2018, at the level of the central government of the Republic of Srpska, revenues totaled BAM million. The most significant revenues are tax revenues in the amount of BAM million or 64.7% of total revenues, social contributions in the amount of BAM million and other revenues in the amount of BAM 45.4 million, while grants amounted to BAM 1.6 million. In the same period, current expenditures amounted to BAM KM. The most significant expenditures are social benefits in the amount of BAM million, compensation for employees in the amount of BAM million. Grants amounted to BAM 27.7 million, expenditures for goods and services BAM 25.8 million, subsidies BAM 16.9 million, while interest rates amounted to BAM 20.3 million. Net investments in nonfinancial assets amounted to BAM 8.9 million. The surplus at the level of the central government of the RS, in the period January- 10

11 March 2018, amounted to BAM 78.0 million. Financing in the amount of BAM 765 million refers to the purchase of domestic financial assets in the amount of BAM million, domestic borrowing in the amount of BAM million and foreign borrowing in the amount of BAM 77.7 million Total and public debt According to preliminary data, in the period from January to April 2018, the Government used BAM million for servicing external and internal debt, of which: The external debt service refers to BAM 98.5 million 1, and it includes servicing of the external debt of local government units, public enterprises and IDB, that makes indirect external debt equal to BAM 25,3 million, and The internal debt service refers to BAM million 2, within which the service of the internal debt of social security funds, that is indirect domestic debt, amounts to BAM 11.4 million. The total debt of Republika Srpska, according to preliminary data on March 31, 2018 amounted to BAM 5, million, of which: External debt BAM 3,040.1 million, and it consists of: - Debt of Republika Srpska (budget) in the amount of BAM 1,820.4 million, 1 Data on payments made on the basis of external debt to the Treasury Department for records of May 24, Data on payments made on the basis of internal debt according to the report "RS Review of Payments by Period of Payment" from the General Treasury Book, dated May 8, Servicing internal debt included the full payment of expenditures and expenses in 2018 including accrued but unpaid liabilities from previous years. 3 Debt of the Republic of Srpska is determined on a cash basis. - Debt of local government units in the amount of BAM 110 million (direct indebtedness is BAM 16.3 million, while indirect indebtedness amounts to BAM 93.7 million), and - Debt of public enterprises and IDB in the amount of BAM 1,109.7 million and Domestic debt BAM 2,316.2 million, and it consists of: - Debt of the Republic of Srpska (budget) in the amount of BAM 1,875 million, - Debt of local government units in the amount of BAM million and - Social security funds debt amounts to BAM 154 million (direct debt is BAM 57.3 million, while indirect indebtedness is BAM 96.7 million). According to preliminary data on March 31, 2018 the total debt of the Republic of Srpska subject to legal limitation amounted to BAM 5,309.8 million (50.2% of GDP 4 ), while public debt subject to legal limitation amounted to BAM 4,200 million (39.7% of GDP) 5. According to preliminary data on March 31, 2018 the total exposure of the Republica of Srpska to issued guarantees amounted to BAM million (3.5% of GDP) 6, while the debt amount based on credit indebtedness for which the Government of Republika Srpska issued guarantees amounted to BAM million. In the period January April 2018, obligations based on external and internal debt are created in total amount BAM 275 million, as following: 4 Estimated amount of GDP for 2018 is BAM million 5 According to the Law on Borrowing, Debt and Guarantees, the RS limit for total RS debt amounts to 60% of GDP, while the RS public debt limit is 55% of GDP. 6 According to the Law on Borrowing, Debt and Guarantees of the RS, the total exposure of the Republic of Srpska to issued guarantees can not be higher than 15% of the realized GDP in that year. 11

12 External debt BAM 155 million 7 (where BAM 48.1 million was withdrawn from investment projects, while BAM million was withdrawn from the International Monetary Fund and the World Bank for the budget support), Internal debt BAM 120 million (BAM 20 million on the basis of issued treasury bills, and BAM 100 million on the basis of issued long-term bonds). 7 The amounts withdrawn are recalculated from the currency of withdrawal in BAM using valid exchange rates on the day of withdrawal, according to the exchange rate list of the Centralank of BiH. 12

13 II. MACROECONOMIC INDICATORS - TABLES AND GRAPHICS BASIC INDICATORS OF MACROECONOMIC MOVEMENT (1) INDICATORS GDP RS, current prices (in KM million) Real GDP growth rate (in%) 6,3 6,9 6,1-3,2 1,1 1,0 Population - estimation 1) (in thousands) GDP per capita (in KM) GDP (EUR million) 2) GDP per capita (EUR) Consumer Price Index (%) Average annual growth rate of CPI (%) 0,0 6,4 1,1 7,2-0,4 2,5 3,9 Annual CPI growth rate for December (%) (m/m-12) 0,0 4,6 4,3 3,6 0,3 3,1 3,2 Fiscal indicators for the level of the general government of RS (% of GDP) 3) Consolidated public revenues (% of GDP) n/a n/a n/a n/a n/a n/a 42,8 Consolidated public expenditures (% of GDP) n/a n/a n/a n/a n/a n/a 45,5 Consolidated deficit / surplus (% of GDP) n/a n/a n/a n/a n/a n/a -2,7 Foreign trade Export of goods (mil.km) Export growth rate (%) 34,1 36,2 8,5 15,0-13,0 30,2 17,6 Import of goods (mil.km) Import growth rate (%) 9,3-6,5 21,3 23,9-14,0 13,6 12,9 Export Import Coverage (%) 38,3 55,8 49,9 46,3 46,9 53,7 55,9 Balance of trade (KM) Export of goods (% of GDP) 19,9 23,5 22,7 22,6 20,3 26,1 29,4 Volume of trade (% of GDP) 71,7 65,7 68,1 71,3 63,5 74,7 82,0 Investments Foreign direct investments, net (in KM million) n/a n/a n/a n/a 170,4 205,1 372,5 Foreign direct investment, net (% of GDP) n/a n/a n/a n/a 2,1 2,5 4,3 Realized investments in fixed assets (in KM million) Gross fixed capital formation (% of GDP) 17,8 15,1 18,8 21,2 19,1 17,6 15,9 Loans and deposits Total loans (KM million) Loans to legal entities (KM million) Loans to households (KM million) Total deposits (KM million) Deposits to legal entities (KM million) Deposits of households (KM million) Employment, salaries and pensions Number of employees, average Number of unemployed, average Survey rate of employees (%) n/a 30,9 35,1 37,3 37,2 36,6 36,1 Survey rate of unemployed (%) n/a 28,5 25,2 20,5 21,4 23,6 24,5 Net earnings, average for period (KM) Average pension, average for period (KM) Debt of the government sector External debt (KM) State indebtedness (KM million) Public debt (KM million) Total debt (KM million) Public debt (% of GDP) 54,9 45,8 40,0 37,0 39,7 40,0 41,0 Total debt (% of GDP) 58,7 49,1 43,1 40,3 44,6 46,2 48,8 1) Source: RS Institute of statistics, the population estimates are based on the results obtained from the 2013 Population sensus. 2) Average annual exchange rate KM / EUR = 1,9558 (Source: CBBH). 3) Fiscal indicators in accordance with the GFS methodology, available since

14 BASIC INDICATORS OF MACROECONOMIC MOVEMENT (2) INDICATORS ) GDP RS, current prices (in KM million) Real GDP growth rate (in%) -0,8 1,7 0,3 2,8 3,5 3,7 Population - estimation 1) (in thousands) n/a GDP per capita (in KM) n/a GDP (EUR million) 2) GDP per capita (EUR) n/a Consumer Price Index (%) Average annual growth rate of CPI (%) 2,1 0,0-1,2-1,4-1,2 0,5 Annual CPI growth rate for December (%) (m/m-12) 2,0-1,5-0,8-2,0-0,2 0,4 Fiscal indicators for the level of the general government of RS (% of GDP) 3) Consolidated public revenues (% of GDP) 42,7 41,3 41,9 42,6 40,7 40,4 Consolidated public expenditures (% of GDP) 46,0 42,8 46,3 43,8 42,8 39,8 Consolidated deficit / surplus (% of GDP) -3,3-1,5-4,4-1,3-2,0 0,6 Foreign trade Export of goods (mil.km) Export growth rate (%) -7,3 9,7 3,4-2,9 9,8 21,2 Import of goods (mil.km) Import growth rate (%) -2,0 1,6 8,5-11,7 1,3 9,7 Export Import Coverage (%) 52,9 57,1 54,4 59,8 64,8 71,6 Balance of trade (KM) Export of goods (% of GDP) 27,6 29,6 30,3 28,4 29,8 34,8 Volume of trade (% of GDP) 79,7 81,4 85,9 75,9 75,8 83,4 Investments Foreign direct investments, net (in KM million) 403,6 165,3 422,3 150,3 40,5 n/a Foreign direct investment, net (% of GDP) 4,7 1,9 4,8 1,6 0,4 n/a Realized investments in fixed assets (in KM million) n/a Gross fixed capital formation (% of GDP) 19,1 17,8 22,6 17,9 17,3 n/a Loans and deposits Total loans (KM million) Loans to legal entities (KM million) Loans to households (KM million) Total deposits (KM million) Deposits to legal entities (KM million) Deposits of households (KM million) Employment, salaries and pensions Number of employees, average Number of unemployed, average Survey rate of employees (%) 35,3 34,6 34,9 35,2 35,5 37,3 Survey rate of unemployed (%) 25,6 27,0 25,7 25,2 24,8 21,0 Net earnings, average for period (KM) Average pension, average for period (KM) Debt of the government sector External debt (KM) State indebtedness (KM million) Public debt (KM million) Total debt (KM million) Public debt (% of GDP) 43,8 43,1 46,0 46,7 45,1 42,1 Total debt (% of GDP) 54,2 53,5 56,9 57,3 56,5 53,2 1) Source: RS Institute of statistics, the population estimates are based on the results obtained from the 2013 Population sensus. 2) Average annual exchange rate KM / EUR = 1,9558 (Source: CBBH). 3) Fiscal indicators in accordance with the GFS methodology, available since ) The amount of GDP for is the estimation of the RS Institute of statistic, Release No. 58/18 of 30 March Debt amounts, for 2017 are preliminary data. 14

15 GROSS DOMESTIC PRODUCT OF THE REPUBLIC OF RUSKA, ACCORDING TO THE PRODUCTION APPROACH A B C D Е F G H I J K L M N O P Q R S Y E A R Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas, steam and air-conditioning supply Water supply, sewerage, waste management and remediation activities Construction Wholesale and retail trade, repair of motor vehicles and motorcycles Transportation and storage Accommodation and food services activities Information and communication Financial and insurance activities Real estate activities S t r u c t u r a, in% ,5 1,7 9,2 4,7 0,9 4,5 11,4 2,4 1,7 5,0 2,1 7,2 3,3 0,2 8,7 3,0 3,1 0,3 0,7 1,4 82,1 17, ,1 1,7 8,8 4,2 0,9 4,4 12,3 2,3 1,7 4,5 2,0 6,1 3,5 0,2 8,5 3,1 3,1 0,4 0,6 1,3 80,2 19, ,5 1,7 8,9 3,7 0,9 5,5 11,9 2,4 1,6 4,4 2,7 5,4 3,6 0,2 8,5 3,2 3,2 0,4 0,6 2,0 79,4 20, ,4 2,0 8,5 4,2 0,9 6,1 13,5 2,3 1,4 4,7 2,7 4,7 3,2 0,3 9,0 3,8 4,5 0,4 0,7 2,1 82,1 17, ,1 1,7 9,3 4,4 1,0 6,1 11,9 2,3 1,4 5,1 2,9 5,1 3,3 0,3 10,2 4,4 4,2 0,7 0,7 2,2 83,7 16, ,5 1,9 8,6 4,6 1,0 4,9 12,4 2,7 1,5 5,0 2,8 5,0 3,3 0,4 9,8 4,3 4,3 0,9 0,8 2,1 82,7 17, ,2 2,1 8,9 4,3 1,0 4,5 12,1 2,7 1,4 4,9 2,9 4,8 3,0 0,4 10,1 4,7 4,8 0,9 0,7 2,1 82,2 17, ,7 2,2 7,8 4,1 1,1 4,3 12,1 2,8 1,5 5,1 3,1 4,9 3,2 0,4 10,2 4,7 5,0 1,0 0,8 2,3 81,6 18, ,4 2,3 8,6 4,6 1,0 4,4 12,0 2,9 1,5 5,2 3,0 4,7 2,6 0,5 9,8 4,3 5,0 1,2 0,8 2,1 82,7 17, ,4 2,2 8,7 4,4 1,1 4,8 11,8 3,1 1,3 5,4 3,1 4,6 2,3 0,5 10,0 4,3 5,0 1,3 0,8 2,0 82,2 17, ,3 2,3 9,7 4,3 1,1 4,7 11,4 3,1 1,4 5,1 3,1 4,5 2,4 0,5 9,9 4,2 4,9 1,4 0,9 2,0 82,2 17, ,3 2,0 10,7 4,7 1,0 4,9 11,1 3,0 1,5 4,8 3,0 4,3 2,7 0,5 9,5 4,1 4,7 1,3 0,9 2,1 82,0 18,0 100 R e a l g r o w t h r a t e, in % ,1 24,8 13,2 9,7-1,9 1,2 1,6 10,9 35,2 0,4 19,7-0,5 8,9 7,4 3,8 6,4 2,3 7,4 2,3 37,1 6,0 7,9 6, ,9 2,5 4,7-5,4 0,8 16,8 6,6 9,1-2,3 13,5 23,1 0,1 12,5 21,9 6,5 4,5 4,4 11,0 10,9 13,9 6,6 8,1 6, ,1 20,9 2,0 10,5-8,4 19,1 9,9 7,5-3,5 16,8 8,1 0,8-4,1 21,1 3,9 5,4 1,3 8,2 5,4 25,6 6,3 5,3 6, ,5-10,6 2,3 3,6 2,0-6,2-11,6-5,2-5,9 1,0 16,0 0,1-13,8-5,8 3,2 4,4 3,3 9,7 0,2 29,3-2,9-4,8-3, ,3 10,9 6,2 3,0-2,0-8,9 2,6 14,1 3,9-2,8 1,3 0,1 2,0 12,8 0,8 2,5 4,2 1,6 8,3 3,7 0,8 2,7 1, ,8 17,7 3,0 0,0 0,2-5,4 2,2 2,7 1,1 1,0 3,2-0,6-1,0 2,9 0,2 3,6 3,3 9,7-2,8 4,1 0,8 2,1 1, ,9-1,7-4,5-3,7-7,5-3,2 0,6 2,3-1,7 1,8 5,9-1,0 1,4 13,1 3,5 0,8 1,9 2,1 5,3 6,3-1,0 0,2-0, ,8 5,4 6,5 1,1-10,7 0,7 0,1 4,3 4,3 3,6 2,2-2,2-14,0 4,6 0,4 1,1-0,9 8,9-10,1 2,7 1,9 1,0 1, ,2-3,4 5,9-9,0 17,5 12,9-2,8 8,3-5,5-0,1 1,4-0,2-5,5 3,4 1,5 0,9 0,7 7,5 11,8-5,0 0,2 1,1 0, ,4 10,4 2,3-1,0-2,6 5,1 3,2 0,4 11,3 0,2 3,1 0,1 3,6 3,3 1,2 2,0 1,3 3,3 4,8 1,9 2,7 3,6 2, ,8-0,5 3,8 19,5 0,8 7,1 1,8 2,1 4,5-2,6 0,5 0,1 11,8-3,2 0,2 1,7 1,0 3,8 6,2 1,8 3,4 4,3 3,5 Professional, scientific and tehnical activities Administrative and support service activities Public administration and defense; compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities FISIM ( minus ) Gross value added Taxes on products minus subsidies on products Gross domestic product 15

16 QUARTERLY GROSS DOMESTIC PRODUCT, REAL GROWTH RATE (IN %), CHANGE IN REALTION TO THE SAME QUARTER OF THE PREVIOUS YEAR, ESA 2010 A B, C,D,E C F G,H,I J K L M,N O,P,Q R,S Y e a r Q u a r t e r Agriculture, forestry and fishing Mining and quarrying; Manufacturing; Electricity, gas, steam and air-conditioning supply; Water supply, sewerage, waste management and Оf which: C Manufacturing Construction Wholesale and retail trade, repair of motor vehicles, motorcycles; Transport and storage; Accommodation and food services activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities; Administrative and support service activities Public administration and defense, compulsory social security; Education; Human health and social work activities Arts, entertainment and recreation; Other service activities FISIM (minus) GROSS VALUE ADDED Taxes on products less subsidies on products GROSS DOMESTIC PRODUCT 2013 I 10,5 3,8 10,8-4,3 0,6 3,4 2,6-2,2-9,4 0,5-0,9 4,4 1,7 0,8 1,6 II 10,3 5,6 9,1-0,7 0,1 4,6 2,3-2,5-12,9 0,3 0,0 3,9 1,9 1,4 1,8 III 11,6 3,2 2,6 0,1 0,7 3,9 2,3-2,5-13,6 0,2 0,7 2,4 1,7 1,4 1,6 IV 10,7 2,1 4,6 5,2 3,4 2,5 1,8-1,6-11,0-0,1 2,6 0,2 2,3 0,3 1, I -7,8 4,0 13,4 13,6 0,8-1,0 1,4-0,3-9,2 0,7 8,0-3,9 0,3 0,9 0,3 II -10,1-3,8 1,1 12,5-1,2 0,0 1,6-0,4-4,6 0,8 9,5-5,3-1,2-0,5-1,0 III -9,1 1,2 5,5 12,8-1,5 0,9 0,9 0,1-1,5 1,1 9,7-6,4 0,1 1,1 0,3 IV -5,5 3,7 5,5 13,0-1,9-0,4 1,8-0,1-0,7 2,0 9,5-4,6 1,4 2,7 1, I 2,0 2,6-1,1 8,2 1,2 0,5 2,7 0,2 3,6 1,9 3,8 2,7 2,1 2,8 2,3 II 5,4 4,1 0,9 5,4 3,1-0,2 3,2 0,3 2,9 2,2 3,3 2,9 3,1 3,4 3,2 III 7,9 2,8 3,1 2,9 4,5 0,4 3,7-0,5 3,5 1,0 3,8 1,5 3,1 3,8 3,2 IV 6,0-0,5 5,9 5,1 4,2 0,3 2,6 0,3 4,3 0,6 4,4 0,3 2,2 4,6 2, I 4,4 5,0 6,2 8,0 2,3-2,2 1,4-0,1 9,6 0,5 4,2 2,3 2,9 4,1 3,1 II 5,7 2,5 2,5 7,3 1,7-2,5 0,0 0,2 10,1 0,2 4,7 1,9 2,2 4,4 2,6 III 7,3 8,4 1,8 7,9 1,9-2,9 0,2 0,8 8,8 0,9 4,8 1,3 3,8 4,5 4,0 IV 5,8 11,2 5,0 5,7 2,4-2,9 0,2-0,4 8,2 1,3 4,7 1,9 4,4 4,4 4,4 2017¹) I -4,2 4,5 6,5 3,6 8,0 2,1 3,2 0,1-2,1 1,1 4,6 2,6 2,6 3,1 2,7 II -5,8 4,7 7,3 5,1 7,7 0,3 3,7 0,0-0,9 1,3 5,1 3,5 2,6 3,4 2,8 III -6,0 1,7 8,6 6,4 9,8 0,2 6,1 0,3 1,6 2,6 6,0 4,3 3,0 4,5 3,3 IV -6,2 2,2 8,8 5,7 9,2 0,9 6,8 0,2 1,2 2,4 6,9 5,7 2,9 3,7 3,1 16

17 GROSS DOMESTIC PRODUCT, EXPENDITURE APPROACH, REAL GROWTH RATE (IN %) Период Government Gross fixed External Private final final capital Change in balance of consumption consumption formation in inventories goods and expenditure expenditure fixed assets services GDP ,5 1,1 5,4 2,7-7,6 6, ,7 0,7-2,4-0,6-0,2-3, ,1-0,2 0,5-4,0 4,9 1, ,7 1,5-1,0-0,9 2,1 1, ,7 0,4 2,7-2,4-0,8-0, ,1 0,5-1,3 1,4 1,0 1, ,2 0,6 1,2 2,0-4,7 0, ,9-0,4 0,0 3,2-1,9 2, ,7 0,5 0,9 0,7-0,3 3,5 17

18 AVERAGE ANNUAL RATES OF CHANGE IN INDUSTRIAL PRODUCTION, CALCULATED BY CALENDAR ADJUSTED DATA, IN % BY MIGs 2010 By section and division (KD) Period INDUSTRY TOTAL Intermediate goods (AI) Energy (AE) Capital goods (BB) Durable consumer goods (CD) Non durable consumer goods (CN) Mining and quarrying (B) Manufacturing (C) Electricity, gas, steam and air conditioning supply (D) I-XII 2013 I-XII 2012 I-XII 2014 I-XII 2013 I-XII 2015 I-XII 2014 I-XII 2016 I-XII 2015 I-XII 2017 I-XII ,1 2,9 4,3-23,7 1,4 16,6 4,4 4,2 1,8 0,7 3,3-7,5 8,4 11,6 5,2-3,3 5,0-9,0 2,7 4,4 1,0-5,6 2,4 7,4 10,2 2,7-1,0 8,2 2,9 17,7 9,8-3,0 1,1 0,4 3,6 25,3 1,4 6,9-5,6 20,7-4,1 2,2-2,1 6,5-7,5 ANNUAL RATES OF CHANGE IN INDUSTRIAL PRODUCTION, CALCULATED BY CALENDAR ADJUSTED DATA, IN% XI 2017 XII 2017 I 2018 II 2018 III 2018 IV 2018 I-IV 2018 XI 2016 XII 2016 I 2017 II 2017 III 2017 IV 2017 I-IV 2017 INDUSTRY TOTAL 4,3-2,7-1,8 5,2 8,5 3,7 4,2 BY MIGs 2010 AI Intermediate goods 9,8-0,2 22,1-1,1-18,6-12,0-3,1 AЕ Energy -1,0-15,0-5,7 16,4 47,0 19,1 18,6 BВ Capital goods 10,6 19,5-36,0-23,5-29,3 14,1-29,7 CD Durable consumer goods 2,6-0,4 14,2 15,1 23,0 27,8 17,7 CN Non durable consumer goods 6,2 16,7-7,8 1,3 0,8-8,2-1,9 BY SECTION AND DIVISION (KD) B MINING AND QUARRYING 4,0-10,6 15,2-5,5-20,4 2,8-6,7 C MANUFACTURING 7,2 0,0-10,0 0,2 2,3-15,1-2,2 D ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY -2,0-0,3 4,0 20,5 42,8 52,1 22,1 18

19 19

20 CONSUMER PRICE INDICES ACCORDING TO COICOP (M/M-12) Period Total Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing, water, electricity, gas and other fuels Furnishings, household equip. and routine mainten. of the house Health Transport Communication Recreation and culture Education Restaurants and hotels Other goods and services ,0 102,7 109,6 95,7 100,9 99,7 100,5 103,0 104,3 100,0 100,9 100,0 100, ,5 96,3 104,7 91,6 99,8 99,5 99,8 99,8 99,9 100,0 101,4 100,0 100, ,2 99,2 108,4 92,4 100,2 100,1 102,2 94,6 104,4 100,4 100,1 100,0 99, ,4 98,3 104,9 89,7 100,7 97,8 101,9 94,2 98,9 99,6 100,7 103,2 99, ,8 99,1 106,3 89,1 102,1 99,0 101,9 99,3 100,1 99,9 100,0 101,3 99,9 IV 100,8 99,7 103,7 89,3 102,8 97,6 102,2 106,9 100,1 100,6 100,3 101,5 99,0 V 100,6 99,8 103,9 89,3 100,9 98,0 102,4 106,1 100,1 100,7 100,3 100,9 99,1 VI 100,4 99,8 104,2 88,5 100,9 98,7 102,3 104,2 100,1 100,6 100,3 100,9 99, VII 100,3 99,6 106,4 87,8 101,0 98,3 102,3 103,1 100,1 100,6 100,3 100,8 100,1 VIII 100,4 100,4 106,3 88,3 101,0 98,2 103,1 102,3 100,1 99,9 100,3 100,8 99,4 IX 100,6 101,2 105,8 88,4 100,5 99,1 103,0 102,1 100,1 100,6 100,3 100,8 99,4 X 100,5 101,1 105,4 88,4 100,4 98,8 102,8 101,9 100,1 100,7 100,3 100,9 99,6 XI 100,3 100,4 105,4 88,7 100,4 99,7 102,7 101,8 100,0 100,9 100,3 100,1 99,3 XII 100,4 100,5 105,7 89,5 100,4 98,7 102,4 101,9 100,0 100,7 100,3 99,9 99,8 I 99,7 100,3 105,4 86,6 100,4 98,8 101,9 101,1 99,8 99,6 100,0 100,1 98,8 II 100,8 100,4 105,6 86,8 101,1 99,2 102,0 106,9 99,8 99,9 100,0 100,2 99,5 III 101,0 101,4 107,1 86,8 101,0 101,2 102,3 106,1 99,8 100,0 100,0 100,2 99,6 IV 101,1 101,3 106,9 87,2 100,6 99,5 102,3 106,7 99,7 100,7 99,9 100,1 100,3 20

21 21

22 EXTERNAL TRADE OF THE REPUBLIC OF SRPSKA (in KM thousand) Year Export Import Coverage of Volume of Balance of Volume of Balance of Imports by GDP Export/GDP Import/GDP trade trade trade/bdp trade/gdp Exports ,3% ,9% 51,9% 71,7% -32,0% ,8% ,5% 42,1% 65,7% -18,6% ,9% ,7% 45,4% 68,1% -22,8% ,3% ,6% 48,7% 71,3% -26,1% ,9% ,3% 43,2% 63,5% -23,0% ,7% ,1% 48,6% 74,7% -22,5% ,9% ,4% 52,6% 82,0% -23,2% ,9% ,6% 52,1% 79,7% -24,5% ,1% ,6% 51,8% 81,4% -22,2% ,4% ,3% 55,7% 85,9% -25,4% ,8% ,4% 47,5% 75,9% -19,1% ,8% ,8% 46,0% 75,8% -16,2% ,6% ,8% 48,6% 83,4% -13,8% 2018 I-IV ,1% n/a n/a n/a n/a n/a NOTE: The amount of GDP for the estimated value of the Institute of Statistics the Republic of Srpska External trade, in KM thousand January March May July September November January March May July September November January March May July September November January March May July September November January March May July September November January March Export Import Balance of trade 22

23 EXPORTS BY COUNTRY OF DESTINATION (in KM thousand) Year Serbia Italy Germany Croatia Slovenia Austria Other countries Total 2005 n/a n/a I-IV

24 IMPORTS BY COUNTRY OF ORIGIN (in KM thousand) Year Serbia Italy Germany Croatia Russian Other Slovenia Federation countries Total 2005 n/a n/a I-IV

25 PARTICIPATION OF PRODUCTS IN THE STRUCTURE OF EXPORTS AND INDEX OF EXPORT (in KM thousand) Export Structure in % Index of Export I-IV 2017 I-IV 2018 I-IV 2017 I-IV 2018 I-IV 2018 I-IV 2017 Укупно ,0 Electrical energy ,3 8,6 130,8 Artificial corundum, whether or not chemically defined; aluminium oxide; ,1 6,1 123,0 aluminium hydroxide Parts of footwear ,0 5,8 130,6 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end jointed, of a ,9 4,6 106,3 thickness exceeding 6 mm Petroleum oils and oils obtained from bituminous minerals, crude ,3 4,2 273,5 Other furniture and parts thereof ,5 3,9 128,0 Seats ,3 2,7 103,1 Structures and parts of structures, of iron or steel ,7 2,0 129,5 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles ,9 1,9 101,9 Insulated wire, cable and other insulated electric conductors, whether or not fitted with connectors Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials Hydrogen, rare gases and other non metals Other salts of inorganic acids or peroxoacids, other than azides ,5 1,7 133, ,4 1,5 112, ,8 1,4 101, ,5 1,4 127, ,3 1,3 130,8 25

26 26

27 EMPLOYMENT AND UNEMPLOYMENT Period Employees Unemployed Persons deleted from the register for employment LFS employment rate LFS unemployment rate Statistical unemployment rate ,5% ,9% 28,5% 36,6% ,1% 25,2% 35,1% ,3% 20,5% 34,3% ,2% 21,4% 35,0% ,6% 23,6% 37,3% ,1% 24,5% 38,6% ,3% 25,6% 39,1% ,6% 27,0% 38,8% ,9% 25,7% 37,7% ,2% 25,2% 36,2% ,5% 24,8% 34,2% ,3% 21,0% 31,5% I-IV

28 28

29 AVERAGE NET AND GROSS WAGES Period Average net wages (in КМ) Average gross wages (in КМ) Nominal growth of Real growth of average net wages average net wages (%) (%) ,9 6, , ,3 10, ,1 20, ,4 4, ,5-2, ,2-0, , ,1-1, ,1 3, ,7 2, ,6 1, ,6-1,1 I ,2-1,4 II ,9 0,7 III ,2-0,6 IV ,0 1,1 29

30 PENSION Participation The ratio of Period of the average the number of Average Average net Minimum Number of Number of pension in the insured and pension (KM) wages (КМ) pension (KM) insured pensioners average net the number of wage pensioners ,9% , ,3% , ,3% , ,3% , ,6% , ,8% , ,6% , ,2% , ,4% , ,4% , ,2% , ,9% , ,4% ,16 I ,6% ,17 II ,8% ,17 III ,8% ,17 IV ,6% ,17 30

31 DEPOSITS (in KM thousand) Year Government and Public and Private Banks and Non-banking Non-profit Deposits of government state enterprises banking financial organizations the hausehold institutions enterprises and society institutions institutions Other TOTAL NOTE: Data for December 31, 2017 is the preliminary. The data refer to data for the banks of the Republika of Srpska. LOANS (in KM thousand) Year Government Private Banks and Non-banking and Public and state Non-profit Loans of the enterprises banking financial government enterprises organizations hausehold and society institutions institutions institutions Other TOTAL

32 TOTAL AND PUBLIC DEBT OF THE REPUBLIC OF SRPSKA (in million KM) Year External debt outstanding*** Republika Srpska (budget) which is subject to the legal limitation which is not subject to the legal limitation Local governments Public enterprises and IDB Domestic debt outstanding*** Republika Srpska (budget) Local governments Social security funds Republika Srpska debt (RS budget) ( ) which is subject to the legal limitation ( ) which is not subject to the legal limitation (1.1.2.) Debt of local governments ( ) Debt of social security funds and Clinical centre (2.3.) Debt of public enterprises and IDB (1.3.) , , , , , , , , , ,7 63, , ,0 79, , ,4 86, , *** ,3 110, , **** ,7 109, , (in million KM) Year Public debt (3+4+5) Total debt ( ) Public debt subject to the legal limitation ( ) Total debt subject to the legal limitation ( ) Gross domestic product** Public debt/gdp (%) (7/11) Total debt/ GDP (%) (8/11) Public debt subject to the legal limitation /GDP (%) (9/11) Total debt subject to the legal limitation /GDP (%) (10/11) ,9% 58,7% ,8% 49,1% ,0% 43,1% ,0% 40,3% ,7% 44,6% ,0% 46,2% ,0% 48,8% ,8% 54,2% ,1% 53,5% ,0% 56,9% 44,9% 55,8% ,7% 57,3% 46,4% 57,1% ,1% 56,5% 44,7% 56,1% 2017*** ,1% 53,2% 41,7% 52,7% 2018**** ,6% 52,7% 40,9% 52,1% 32

33 NOTE: Total and public debt defined by the Law on borrowing, debt and guaranties; **Republika Srpska Institute of Statistics (data for the period ); for 2018 projection of the RS Ministry of Finance, used for the production of Economic Reform Programme of Republika Srpska for the period ; ***Preliminary data of the RS Ministry of Finance, local governments and social security funds; ****Projections of the RS Ministry of Finance, local governments and social security funds, used for the production of Economic Reform Programme of Republika Srpska for the period OVERVIEW OF ISSUED SECURITIES OF THE REPUBLIC OF SRPSKA Terms emissions The nominal Local Symbol Interest rate/ value of the Inflow Currency of Securities Auction date Maturity date Maturity The coupon Uniform price emission clause interest rate RS17-T months euro 0,3% 99,9 TOTAL: RSBD-O and years euro 3% 100,4 TOTAL:

34 III. FISCAL INDICATORS - TABLES AND GRAPHICS CONSOLIDATED BALANCE OF THE GENERAL GOVRENMENT OF THE REPUBLIC OF SRPSKA IN THE PERIOD YEARS (КМ MILLION) 8 GFS GENERAL GOVERNMENT (2) D I S C R I P T I O N Code Execution 2011 Execution 2012 Execution 2013 Execution 2014 Execution 2015 Execution 2016 Execution А. R E V E N U E S (I+II+III+IV) 3.726, , , , , , ,2 11 I TAX 1.881, , , , , , ,0 12 II SOCIAL CONTRIBUTIONS 1.365, , , , , , ,8 13 III GRANTS 13,4 18,8 8,5 33,8 29,8 20,8 24,4 14 IV OTHER INCOME 466,2 446,5 453,3 455,1 468,7 477,0 495,0 2 B. E X P E N D I T U R E S (I+II+III+IV+V+VI+VII+VIII) 3.443, , , , , , ,8 21 I REFUND TO EMPLOYEES 934,2 952,5 902,2 944,0 966,1 970,9 964,9 22 II USE OF GOODS AND SERVICES 381,4 390,3 357,6 380,8 360,6 358,4 346,5 23 III CONSUMPTION OF BASIC CAPITAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 24 IV INTEREST 67,4 87,2 85,3 100,5 113,4 122,6 131,4 25 V SUBSIDIES 180,1 145,7 123,6 110,1 105,0 111,7 130,3 26 VI GRANTS 0,1-1,6-1,4 0,6 0,3 0,2 0,1 27 VII SOCIJAL BENEFITS 1.758, , , , , , ,2 28 VIII OTHER EXPENSES 122,2 137,1 92,0 84,2 95,5 94,4 107,4 C. G R O S S S U R P L U S / D E F I C I T (A - B) 283,5 142,7 202,8 69,7 250,8 257,1 419,4 31 D NET INVESTMENTS IN NONFINANCIAL ASSETS 517,9 428,8 330,3 456,9 368,3 453,7 357,6 E. S U R P L U S / D E F I C I T (C - D) -234,3-286,1-127,5-387,2-117,5-196,7 61,8 F. N E T F I N A N C I N G (E H) -234,2-286,1-127,6-388,3-124,4-198,9 52,5 32 G. NET PROCUREMENT OF FINANCIAL ASSETS (I+II) 91,9 176,5 81,9 26,6 55,7-105,1-46,6 321 I DOMESTIC 91,9 176,5 81,9 26,6 55,7-105,1 17,1 322 II FOREIGN 0,0 0,0 0,0 0,0 0,0 0,0-63,7 33 H. N E T D E B T (I + II) 326,1 462,7 209,5 414,9 180,0 93,8-99,0 331 I DOMESTIC 166,1 136,6 27,6 216,0 90,3-91,7 23,7 332 II FOREIGN 160,0 326,0 181,9 198,9 89,7 185,6-122,8 I. D I F F E R E N C E S I N F I N A N C I N G (E - F) -0,2 0,1 0,1 1,1 6,9 2,2 9,4 CONSOLIDATED BILANCE GENERAL GOVRNMENT OF THE REPUBLIC OF SRPSKA IN THE PERIOD , IN % GDP 9 GFS GENERAL GOVERNMENT (2) D I S C R I P T I O N Code Execution 2011 Execution 2012 Execution 2013 Execution 2014 Execution 2015 Execution 2016 Execution А. R E V E N U E S (I+II+III+IV) 42,8 42,7 41,3 41,9 42,6 40,7 40,4 11 I TAX 21,6 21,6 20,4 20,3 20,9 20,8 21,0 12 II SOCIAL CONTRIBUTIONS 15,7 15,7 15,6 16,1 16,3 14,8 14,3 13 III GRANTS 0,2 0,2 0,1 0,4 0,3 0,2 0,2 14 IV OTHER INCOME 5,4 5,2 5,2 5,1 5,1 5,0 5,0 2 B. E X P E N D I T U R E S (I+II+III+IV+V+VI+VII+VIII) 39,6 41,0 39,0 41,1 39,8 38,1 36,2 21 I REFUND TO EMPLOYEES 10,7 11,1 10,3 10,6 10,5 10,1 9,7 22 II USE OF GOODS AND SERVICES 4,4 4,5 4,1 4,3 3,9 3,7 3,5 23 III CONSUMPTION OF BASIC CAPITAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 24 IV INTEREST 0,8 1,0 1,0 1,1 1,2 1,3 1,3 25 V SUBSIDIES 2,1 1,7 1,4 1,2 1,1 1,2 1,3 26 VI GRANTS 0,0 0,0 0,0 0,0 0,0 0,0 0,0 27 VII SOCIJAL BENEFITS 20,2 21,1 21,3 22,9 22,0 20,8 19,4 28 VIII OTHER EXPENSES 1,4 1,6 1,0 0,9 1,0 1,0 1,1 C. G R O S S S U R P L U S / D E F I C I T (A - B) 3,3 1,7 2,3 0,8 2,7 2,7 4,2 31 D NET INVESTMENTS IN NONFINANCIAL ASSETS 6,0 5,0 3,8 5,1 4,0 4,7 3,6 E. S U R P L U S / D E F I C I T (C - D) -2,7-3,3-1,5-4,4-1,3-2,0 0,6 F. N E T F I N A N C I N G (E H) -2,7-3,3-1,5-4,4-1,4-2,1 0,5 32 G. NET PROCUREMENT OF FINANCIAL ASSETS (I+II) 1,1 2,0 0,9 0,3 0,6-1,1-0,5 321 I DOMESTIC 1,1 2,0 0,9 0,3 0,6-1,1 0,2 322 II FOREIGN 0,0 0,0 0,0 0,0 0,0 0,0-0,6 33 H. N E T D E B T (I + II) 3,7 5,4 2,4 4,7 2,0 1,0-1,0 331 I DOMESTIC 1,9 1,6 0,3 2,4 1,0-1,0 0,2 332 II FOREIGN 1,8 3,8 2,1 2,2 1,0 1,9-1,2 I. D I F F E R E N C E S I N F I N A N C I N G (E - F) 0,0 0,0 0,0 0,0 0,1 0,0 0,1 8 Data for are preliminary. 9 The amount of GDP for is the estimate of the RS institue of statistics, Release No. 58/18,

35 CONSOLIDATED BALANCE OF THE GENERAL GOVRNMENT OF THE REPUBLIC OF SRPSKA, BY GOVERNMENT LEVELS, ( КМ MILLION) GFS Social General Gov. GENERAL General Gov. GENERAL Central Local PUBLIC security (1) GOVERNMENT (2) GOVERNMENT Govrnment Government ENTERPRISES D I S C R I P T I O N funds elimination (1) elimination (2) CODE Execution Execution Execution Execution Execution Execution Execution Execution А. R E V E N U E S (I+II+III+IV) 2.619,4 718,3 607,3-116, ,7 150,3-57, ,0 11 I TAX 1.568,1 0,0 380,8 0, ,8 50,4 0, ,2 12 II SOCIAL CONTRIBUTIONS 779,4 645,7 0,0 0, ,1 0,0 0, ,1 13 III GRANTS 15,0 64,8 45,8-104,8 20,8 54,2-54,2 20,8 14 IV OTHER INCOME 257,0 7,8 180,7-11,5 434,0 45,8-2,8 477,0 2 B. E X P E N D I T U R E S (I+II+III+IV+V+VI+VII+VIII) 2.511,7 749,8 502,3-117, ,1 80,5-61, ,0 21 I REFUND TO EMPLOYEES 746,8 23,1 195,9 0,0 965,8 5,2 0,0 970,9 22 II USE OF GOODS AND SERVICES 148,3 11,3 140,5 0,0 300,1 58,3 0,0 358,4 23 III CONSUMPTION OF BASIC CAPITAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 24 IV INTEREST 94,5 12,1 18,8-10,6 114,9 17,0-9,3 122,6 25 V SUBSIDIES 98,9 0,0 12,9 0,0 111,7 0,0 0,0 111,7 26 VI GRANTS 156,6 0,5 1,7-106,3 52,6 0,0-52,4 0,2 27 VII SOCIJAL BENEFITS 1.227,6 702,8 76,6-0, ,7 0,0 0, ,7 28 VIII OTHER EXPENSES 39,0 0,0 55,9-0,5 94,4 0,0 0,0 94,4 C. G R O S S S U R P L U S / D E F I C I T (A - B) 137,8 24,6 110,0 0,0 272,3 181,4 0,0 453,7 31 D NET INVESTMENTS IN NONFINANCIAL ASSETS 137,8 24,6 110,0 0,0 272,3 181,4 0,0 453,7 E. S U R P L U S / D E F I C I T (C - D) -30,2-56,2-5,0 1,5-89,8-111,5 4,7-196,7 F. N E T F I N A N C I N G (E H) -29,0-56,3-8,8 2,1-92,0-111,6 4,7-198,9 32 G. NET PROCUREMENT OF FINANCIAL ASSETS (I+II) 89,7-127,6 2,7 14,4-20,8 39,6-123,9-105,1 321 I DOMESTIC 89,7-127,6 2,7 14,4-20,8 39,6-123,9-105,1 322 II FOREIGN 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 33 H. N E T D E B T (I + II) 118,7-71,4 11,6 12,4 71,3 151,1-128,6 93,8 331 I DOMESTIC -23,5-71,4 11,6 12,4-70,9 107,7-128,6-91,7 332 II FOREIGN 142,2 0,0 0,0 0,0 142,2 43,4 0,0 185,6 I. D I F F E R E N C E S I N F I N A N C I N G (E - F) -1,2 0,1 3,8-0,5 2,3 0,0 0,0 2,2 CONSOLIDATED BALANCE OF THE GENERAL GOVRNMENT OF THE REPUBLIC OF SRPSKA, BY GOVERNMENT LEVELS, (КМ MILLION) PRELIMINARY DATA GFS D I S C R I P T I O N Central Govrnment Social security funds Local Government General Gov. (1) elimination GENERAL PUBLIC GOVERNMENT ENTERPRISES (1) General Gov. (2) elimination GENERAL GOVERNMENT (2) Execution Execution Execution Execution Execution Execution Execution Execution CODE А. R E V E N U E S (I+II+III+IV) 2.795,2 616,7 772,3-238, ,3 165,5-70, ,2 11 I TAX 1.671,4 374,2 0,0 0, ,6 48,4 0, ,0 12 II SOCIAL CONTRIBUTIONS 804,7 0,0 688,4-66, ,8 0,0 0, ,8 13 III GRANTS 62,6 45,4 79,4-163,0 24,4 67,0-67,0 24,4 14 IV OTHER INCOME 256,5 197,1 4,5-9,6 448,5 50,1-3,6 495,0 2 B. E X P E N D I T U R E S (I+II+III+IV+V+VI+VII+VIII) 2.608,5 493,3 739,1-240, ,4 87,8-67, ,8 21 I REFUND TO EMPLOYEES 735,8 200,1 22,9 0,0 958,8 6,1 0,0 964,9 22 II USE OF GOODS AND SERVICES 152,2 125,8 4,5-0,5 282,1 64,4 0,0 346,5 23 III CONSUMPTION OF BASIC CAPITAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 24 IV INTEREST 97,1 17,3 11,3-8,3 117,4 17,3-3,3 131,4 25 V SUBSIDIES 108,3 13,2 8,8 0,0 130,3 0,0 0,0 130,3 26 VI GRANTS 232,7 3,1 60,3-231,8 64,3 0,0-64,2 0,1 27 VII SOCIJAL BENEFITS 1.234,2 74,7 631,3 0, ,2 0,0 0, ,2 28 VIII OTHER EXPENSES 48,3 59,1 0,0 0,0 107,4 0,0 0,0 107,4 C. G R O S S S U R P L U S / D E F I C I T (A - B) 127,2 64,2 21,2-0,8 211,8 145,8 0,0 357,6 31 D NET INVESTMENTS IN NONFINANCIAL ASSETS 127,2 64,2 21,2-0,8 211,8 145,8 0,0 357,6 E. S U R P L U S / D E F I C I T (C - D) 59,4 59,2 12,0 2,5 133,1-68,1-3,1 61,8 F. N E T F I N A N C I N G (E H) 50,8 51,4 14,0 2,6 118,7-63,2-3,1 52,5 32 G. NET PROCUREMENT OF FINANCIAL ASSETS (I+II) -2,3 62,9-12,4 17,8 66,0-55,5-57,1-46,6 321 I DOMESTIC 61,5 62,9-12,4 17,8 129,7-55,5-57,1 17,1 322 II FOREIGN -63,7 0,0 0,0 0,0-63,7 0,0 0,0-63,7 33 H. N E T D E B T (I + II) -53,0 11,5-26,4 15,2-52,7 7,7-54,0-99,0 331 I DOMESTIC 55,5-4,8-26,4 15,2 39,6 38,2-54,0 23,7 332 II FOREIGN -108,6 16,3 0,0 0,0-92,3-30,5 0,0-122,8 I. D I F F E R E N C E S I N F I N A N C I N G (E - F) 8,7 7,8-2,0-0,1 14,3-4,9 0,0 9,4 35

36 CONSOLIDATED BALANCES OF THE CETRAL GOVERNMENT OF THE REPUBLIC OF SRPSKA, BY ACCOUNTING FONDS, FOR PERIOD JANUARY MARCH (KM MILION) FROM PERIODIC TRANSACTION REPORT PRELIMINARY DATA TOTAL TOTAL GFS Found 01 Found 02 Found 03 Found 04 Found 05 Elimination D I S C R I P T I O N ( ) (8+9) Code I-III 2018 I-III 2018 I-III 2018 I-III 2018 I-III 2018 I-III 2018 I-III 2018 I-III А. R E V E N U E S (I+II+III+IV) 657,4 21,4 2,7 0,0 2,2 683,8-10,5 673,4 11 I TAX 429,9 5,8 0,0 0,0 0,1 435,7 0,0 435,7 12 II SOCIAL CONTRIBUTIONS 190,7 0,0 0,0 0,0 0,0 190,7 0,0 190,7 13 III GRANTS 3,0 6,0 1,0 0,0 1,9 11,9-10,3 1,6 14 IV OTHER INCOME 33,8 9,7 1,8 0,0 0,3 45,5-0,1 45,4 2 B. E X P E N D I T U R E S (I+II+III+IV+V+VI+VII+VIII) 567,8 17,6 1,5 0,0 5,5 592,4-6,0 586,4 21 I REFUND TO EMPLOYEES 171,8 4,1 0,4 0,0 0,5 176,8 0,0 176,8 22 II USE OF GOODS AND SERVICES 16,5 8,3 0,6 0,0 0,5 25,9 0,0 25,8 23 III CONSUMPTION OF BASIC CAPITAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 24 IV INTEREST 20,3 0,0 0,0 0,0 0,0 20,3 0,0 20,3 25 V SUBSIDIES 14,8 1,0 0,0 0,0 1,2 16,9 0,0 16,9 26 VI GRANTS 26,6 3,9 0,1 0,0 3,1 33,7-6,0 27,7 27 VII SOCIJAL BENEFITS 311,4 0,1 0,0 0,0 0,0 311,6 0,0 311,6 28 VIII OTHER EXPENSES 6,5 0,2 0,4 0,0 0,1 7,2 0,0 7,2 C. G R O S S S U R P L U S / D E F I C I T (A - B) 89,6 3,8 1,3 0,0-3,2 91,4-4,5 87,0 31 D NET INVESTMENTS IN NONFINANCIAL ASSETS 2,9 2,3 1,0 0,0 2,6 8,8 0,1 8,9 E. S U R P L U S / D E F I C I T (C - D) 86,7 1,5 0,3 0,0-5,8 82,6-4,6 78,0 F. N E T F I N A N C I N G (E H) 85,2 1,1 0,2 0,1-5,5 81,1-4,6 76,5 32 G. NET PROCUREMENT OF FINANCIAL ASSETS (I+II) 91,0 3,4-0,5 0,1 19,3 113,3 0,4 113,7 321 I DOMESTIC 91,0 3,4-0,5 0,1 19,3 113,3 0,4 113,7 322 II FOREIGN 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 33 H. N E T D E B T (I + II) 5,8 2,3-0,7 0,0 24,8 32,2 5,0 37,2 331 I DOMESTIC -36,8 2,3-0,7 0,0-10,3-45,5 5,0-40,5 332 II FOREIGN 42,6 0,0 0,0 0,0 35,1 77,7 0,0 77,7 I. D I F F E R E N C E S I N F I N A N C I N G (E - F) 1,5 0,3 0,0-0,1-0,3 1,5 0,0 1,5 36

37 37