Kosovo continues to face high trade deficit

Kosovo continues to face high trade deficit

Kosovo continues to face high trade deficit. According to the latest figures of the Institute of Statistics, products which are being manufactured in Kosovo are not being able to replace imported products. According to the figures being supplied, the contribution of exports in the trade volume during 2016 was very low, around 310 million euros, while import was nearly 3 billion euros.

Most products are imported from Serbia, with 13,9%, followed by Germany with 12,3%.

This high trade deficit is worrying for the economy of the country. The head of the American Chamber of Commerce in Kosovo, Arian Zeka, says that high trade deficit in Kosovo reflects the unsuitable tax policies.

“The tax reforms of the past two years have produced very few positive results in this aspect, but at the same time, we must also bear in mind the enactment of the Stabilization and Association Agreement, which has further liberalized trade with EU member countries”, he says.

For years now, businesses in Kosovo have faced an unsuitable business environment.

Studies which have been made have identified barriers such as lack of support by the state, dishonest competition from tax evasion and black economy. /balkaneu.com/