Kosovo has been growing economically for years. However, the growth rate is not yet sufficient to combat unemployment and revive the country's economy.
According to the latest World Bank report entitled "Economic rules for the Western Balkans", annual economic growth for Kosovo amounts to 4%, higher than other countries in the region that are experiencing a slowdown.
The forecasts for Kosovo
The World Bank expects Kosovo to record an economic growth of 4.1% and 4,2% respectively in 2020 and 2021. However, the report notes that "there are unwanted risks associated with domestic and regional politics, possible delays in investment plans due to the elections.”
The International Monetary Fund (IMF) had previously forecast economic growth above 4% for Kosovo in the period from 2020 to 2024. Despite this, industry experts believe that the growing trend does not help the problems of Kosovo.
The director of the Kosovo Chamber of Commerce, Berat Rukiqi, stated for Radio Free Europe that the country's economic growth will not exceed 4,5%:
"These estimates are mainly based on projects that are influenced by public investments and at the same time refer to the increase in consumption related to remittances or other specific factors, such as salary increases that may have an impact in the short term but not in the long term.. "- said Rukiqi.
According to official data, the unemployment rate in Kosovo is 25,3% and for Ismail Kastrati, another economics expert, will not decrease with this rate of economic growth.
"To reduce the unemployment rate, economic growth must be higher than 7%."- emphasizes Kastrati.
The same thought shared by Rukiqi, who believes that the forecasts of international financial institutions will not be sufficient to reduce the unemployment rate in the country:
"Despite a slight decline, Kosovo has one of the highest youth unemployment rates in the region. Therefore, with this level of economic growth and given the large number of young people entering the labor market each year, it is impossible with this growth to solve the problem."- declared Rukiqi.
Contrary to forecasts by the World Bank and the International Monetary Fund, the political entities that participated in the October 6 parliamentary elections promised to increase the country's annual economic rate from 6 to 9% for the next four years.