This report covers the main macroeconomic releases from August 6 until July 5, 2015 as well as the financial and political events that took place in Bosnia during this period. The European Union suspended the export of milk and milk products from Bosnia to the block due to complaint from one EU member state. Bosnia and Montenegro and signed a border demarcation agreement. The two countries are the first ex-Yugoslav republics to sign an agreement defining their borders. Bosnian government plans to invest €960mn in public projects in 2016-2018, according to an adopted programme for public investments in the next three years. Bosnia’s Federation, the bigger of the two entities forming the country, could rebalance the 2015 budget at one of its next sessions to lower spending as it has not received the needed €103.5mn financing from the International Monetary Fund (IMF). The smaller entities– the Serb Republic – estimated that the losses in agricultural production, caused by the drought this summer, are over €102.3mn. Key points: • CPI deflation slightly deepened to 1.1% y/y in July from 0.5% y/y in June. • The working-day adjusted industrial production rose by 2.3% y/y in July, cooling from a 3.5% y/y growth in June, due to slower rise of mining and manufacturing sectors. • The foreign trade gap narrowed by 3.4% y/y to BAM3.93bn (€2bn) in the first seven months of 2015 as exports rose faster than imports.