Political situation paralyzes Kosovo’s economy

Political situation paralyzes Kosovo’s economy

The political and constitutional situation is hindering economic development in Kosovo.

The lack of political dialogue and dysfunction of parliament has led to a drop in the number of foreign investors in the country.

According to official data from the Bank of Kosovo, direct foreign investments have not seen a solid growth during PM Isa Mustafa’s term in office.

No progress has been seen even in domestic manufacturing and exports toward the countries of the region and European Union.

Minister of Commerce and Industry, Hykmete Bajrami says that the efforts to attract foreign investors have been made, but according to her, the political situation and developments in the parliament of Kosovo have made investors less interested to invest in Kosovo.

Minister Bajrami says that the business environment in Kosovo has never been favorable, starting with reforms, tax policies, legislation and the removal of bureaucratic procedures.

Representatives of economic associations also say that the political situation may be one of the factors that plays a role in this process.

The head of the American Chamber of Commerce in Kosovo, Arian Zeka says that the political situation is an important factor in the decision of investors who want to expand their capital in other countries.

Zeka says that during the election campaign, economic development has been a priority for every political party, but the current economic developments do not reflect it.

Analyst Shkelzen Dakaj says that at the moment, institutional performance is dropping and capital investments are shrinking.

“If there are no investments in capital projects, the involvement of the private sector will be low. Therefore, 2017 too will not see any economic growth, export growth and no creation of new jobs”, Dakaj says. /balkaneu.com/