World Bank: 2,5% economic growth is not enough to bring unemployment down

World Bank: 2,5% economic growth is not enough to bring unemployment down

Pristina, January 22, 2015/Independent Balkan News Agency

By Elton Tota

Representatives from the World Bank in Kosovo, believe that 2,5-3% economic growth is a positive thing, but it’s not enough to bring unemployment and poverty in Kosovo down. This was announced during the presentation of the six month report of the World Bank on economic developments in Southeast Europe.

This report also points out public expenses of the government, which saw a weak performance, while for this year, representatives of the World Bank demand more cuts in order to preserve the 2% deficit.

Expert of the World Bank, Agim Demukaj said that “last year, performance was week. This was the first time that revenues are lower than the previous year”.

According to the World Bank, revenues from taxes are 9,6% lower than projections.

“For this year and coming years, the government must undertake reforms for an urgent fiscal consolidation and structural reforms in important domains such as education, improvement of the business climate and growth of employment”.

Demukaj spoke of a fall in direct foreign investments. According to the World Bank, foreign investments saw a fall of 3,3% last year.

Based on the World Bank report, current account deficit has worsened due to the increase of imports. Public debt in Kosovo is still low, but it’s growing 2%  of GDP on an annual basis. As far as the financial sector is concerned, it remains sustainable. Exports went up by 9,9% while imports went up by 3,9%. /ibna/