ECONOMIC CONSEQUENCES OF THE CONFLICTS IN UKRAINE AND GAZA

Abstract

<p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: justify; line-height: 115%;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: justify; line-height: 115%;"><span lang="BS-LATN-BA" style="font-family: 'Times New Roman',serif; mso-fareast-font-family: 'Times New Roman'; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: BS-LATN-BA;">The outbreak of wars in Ukraine and Gaza, in addition to the hardships caused by the destruction and suffering for the inhabitants of these countries, also brings troubles to the economies and populations of other countries worldwide. The state of war leads to an increase in energy prices on the international market, upon which the growth and development of economic activities and the standard of living of the population directly or indirectly depend. In such conditions, the economy and population of underdeveloped and developing countries, such as Bosnia and Herzegovina and other Western Balkan countries, are most affected. Due to the reduced purchasing power of the population, there is less personal and production consumption, which directly affects the production of consumer goods. In this work, we will present the impact of rising energy prices on the prices of consumer goods in Bosnia and Herzegovina. We will also present the average income and expenditures of a four-member family in Bosnia and Herzegovina. We will list the financial remittances from our diaspora to their families in Bosnia and Herzegovina and conclude on how it is possible, under these conditions and with existing incomes, to meet all the needs and preserve dignity.</span></p>