Core Insights - The Central Bank of Bosnia and Herzegovina has revised its economic growth forecast for this year down to approximately 2% due to weak domestic and external demand [1] - The inflation forecast has been increased by 0.6 percentage points to 4.1%, aligning with recent short-term inflation estimates [1] Economic Growth - The actual GDP growth rate is expected to be around 2%, which is a downward adjustment from previous forecasts [1] - Key economic sectors such as personal consumption, investment, and trade have been negatively impacted [1] - The main driver of economic growth in the short term is expected to be personal consumption, which is the largest component of the macroeconomic total [1] Inflation - The Central Bank has raised its inflation rate estimate for the year to 4.1% [1] - This adjustment reflects a consistent trend with recent short-term inflation estimates [1] - The Central Bank emphasizes that predictions regarding actual GDP and its components face high uncertainty due to various risks [1]

Group 1 - The Federal Reserve maintained interest rates during the July meeting, highlighting the dual challenges of slowing economic growth and the distorting effects of tariffs [1] - Despite fluctuations in overall GDP data, actual economic growth is gradually slowing under persistent uncertainty, with tariffs expected to rise further, impacting consumer prices by the end of the year [1] - Nuveen forecasts that U.S. economic growth will continue to slow but can avoid recession, with a projected core inflation rate of around 3.0% in 2025, potentially suppressing real income growth and overall economic performance [1] Group 2 - In fixed income, municipal bonds offer attractive yields and income advantages, remaining appealing even amid ongoing market volatility [2] - Nuveen sees investment value in preferred loans, currently yielding between 6.5% and 8%, with significant market opportunities available [2] - A substantial amount of loans, totaling $225 billion, is trading below $95, with an average price around $85 and a three-year maturity yield of approximately 16% [2]