This report covers the main macroeconomic releases from April 6 until May 5, 2014 as well as the financial and political events that took place in Bosnia during this period. In April, the IMF revised down its economic growth forecast for Bosnia to 2.3% from previously projected 3.5%. The growth is expected to strengthen to 3.1% next year and to 4% in 2020. The IMF’s outlook for this year is slightly more pessimistic than that of the country’s central bank which revised its forecast up to 2.6% from 2.5%. The report provides details about Bosnia’s recently approved 2015 budget draft that includes the spending of the state-level institutions and the servicing of the country's foreign debt. It also contains information about the Council of the European Union’s decision to conclude the Stabilisation and Association Agreement (SAA) with Bosnia which is expected to enter into force on June 1. The move will officially unblock the country’s path towards the country’s preparation for EU accession. The report offers details about the main business environment obstacles identified by Bosnian companies, according to a survey carried out by the EBRD and the World Bank. Key points: • Deflation eased to 0.2% y/y in March from 0.7% y/y in February. • Bosnia’s industrial output rose by 0.4% y/y in March, reversing a 1.1% y/y decline in February, thanks to improved performance in all sectors. • Bosnia’s registered unemployment rate remained unchanged at 43.8% for the second month in a row in February.