Politically and economically stable, Republika Srpska has entered the new year. This assessment comes from its officials, as well as from economists and political analysts. They say there should be no illusion that various pressures will cease, but there is reason for optimism that all challenges will be successfully overcome.
In the year behind us, the political event that marked Republika Srpska was the verdict against the legitimately elected President of the Republic, Milorad Dodik, as well as the lifting of U.S. sanctions against both officials and business entities in Republika Srpska following the arrival of the new United States administration led by President Donald Trump.
The political and economic destabilization of Republika Srpska did not succeed in 2025 either, despite the plans of its authors and sponsors, according to numerous analysts. The new government continued along the path of previous cabinets and, alongside a number of important laws, adopted the two key documents—the budget and the economic measures program—despite numerous internal and global pressures.
“The fact that there is no Dodik, yet there is still a crisis, shows that he was not an actor in that political crisis, but its target,” said lawyer Ognjen Tadić.
“Although the crisis is still ongoing, tensions have somewhat eased, largely thanks to Banja Luka’s independent foreign policy,” noted Aleksandar Mitić, research fellow at the Belgrade Institute for International Politics and Economics.
Through its economic policy, Republika Srpska has managed to maintain financial stability and preserve a satisfactory business environment. However, economic analysts believe that those seeking its destabilization are also playing the card of psychological pressure on potential investors, which could create problems in 2026.
“This model, where you do not know what will happen next, is not good for either domestic or foreign investors. But we are resilient,” said economist Aleksandar Ljuboja.
This is also confirmed by the announcement of investments worth four billion convertible marks in 2026.
“An investment cycle follows next year,” emphasized Republika Srpska Prime Minister Savo Minić.
“This is significant for the economy and for that investment cycle,” said Goran Račić, president of the Chamber of Commerce of Republika Srpska.
Globally, no one can say with certainty what will happen in the coming year on the political and economic fronts. Uncertainty is present, and much will depend on U.S. and European policies.
“With the laws they have adopted, they want to push out both Russia and China,” said Aleksandar Mitić.
“In Europe there are now those who are for war and those who are against it. Germany is for war,” said Milorad Dodik, president of SNSD.
Republika Srpska is heavily oriented toward the European Union in its foreign trade. Macroeconomic data show that exports have increased. The domestic economy will also depend on the performance of EU economies and demand for products from this region.
“We see that the EU is spending money on weapons instead of digitalization,” said economist Aleksandar Ljuboja.
What does not depend on global trends, but could significantly improve the economy of Republika Srpska, is the restructuring of public enterprises.
“This needs to be approached seriously,” stressed Goran Račić.
“The ruling party needs to confront corruption within its own ranks and remove incompetent directors,” added lawyer Ognjen Tadić.
Prime Minister Savo Minić is also aware that there are major problems in public enterprises that the government has faced, and that restructuring will continue. He believes that Šume Srpske is a positive example showing that progress is possible. Measures have also been prepared to improve the situation in Elektroprivreda, which will be implemented in 2026.
Source: RTRS
