Political crisis impacts the economy

Political crisis impacts the economy

Pristina, July 14, 2014/Independent Balkan News Agency

By Elton Tota

The political and constitutional crisis in the country has had a negative impact on the economy. Experts of economic developments say that the delays in the formation of the government can further increase trade deficit.

Head of the Center for Strategic and Social Studies, Ibrahim Rexhepi says that the political crisis is having a bad effect.

“Based on the official statistics of the past three months, export has fallen by 12% while import has increased by 7%. Trade deficit in May was 13% higher than in April and 10% higher than a year ago. Compared to last year, in May, budget incomes were 21 million Euros less, while expenses grew by 17 million Euros”, says Rexhepi.

According to him, the clashes about the right for the formation of the government are a proof of the fragility of the system, the lack of stability of institutions and the fact that personal interests of political leaders have been put above the interests of the country.

The same opinion is also shared by the expert of economic affairs, Vebi Rama.

“The essential problem of the country which implies the economic and social problems, relies on the lack of stability and in the undefined and unclear environment for investors”, says Rama.

According to him, direct foreign investments are the only chance for the economic development of Kosovo and reduction of poverty and unemployment.

Experts of economic issues demand from the Kosovar leadership and international factor in the country to offer their maximum in solving the political and constitutional crisis. /ibna/