The negative effects of the political crisis in Kosovo’s economy

The negative effects of the political crisis in Kosovo’s economy

Pristina, 8 January 2016/Independent Balkan News Agency

By Elton Tota

The constant political and institutional crisis continues to have a damaging effect on Kosovo’s economy.

Experts of economic developments told IBNA that in 2016, Kosovo’s economy will continue to feel the consequences of the gridlock caused by the opposition in parliament for three months in a row.

Economy professor, Kushtrim Zeqiri told IBNA that the lack of political stability is the main factor that discourages foreign investors, which Kosovo needs so much.

“This year, authorities in Kosovo must focus on attracting foreign investments. This can only be achieved through stable institutions, which will be able to undertake tax and economic reforms”, he says.

He said that Kosovo’s economy can be revived if adequate policies are used in exploiting natural and human resources.

“Kosovo is a country with economic potential, as it has a young population and great natural resources, especially energy and mineral resources and the activation of these resources will generate economic development for Kosovo”, Zeqiri adds.

Head of the American Chamber of Commerce in Kosovo, Arian Zeka says that there must be an improvement of the political situation in Kosovo, in order for the country to become more attractive for investors.

“Kosovo cannot achieve a sustainable economic development without direct foreign investments. Experience in the past has shown that domestic investments and those few foreign investments are not enough to have a high rate of economic growth”, Zeka said.

According to Zeka, the law on strategic investments, tax changes and tax reforms made during 2015 have enriched Kosovo’s offer for foreign investors, but these alone, are not sufficient to attract them.

Meanwhile, Kosovo’s PM, Isa Mustafa says that 2016 will be the year of foreign investments in Kosovo.

“We have an improvement of the environment as far as direct foreign investments are concerned, but the structure of these investments doesn’t satisfy us, because we would want investments to be in production, which generate a diversifying economic structure. We expect to see a growth of the number of investors in 2016, especially of American companies which have expressed their interest to invest their capital in Kosovo”, the PM says.

According to him the government has taken all measures to improve trade deficit of the country. /ibna/