Economic growth, Kosovo 60 years away from EU countries

According to this report, published in Vienna, Austria, it is said that Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia -- the six Western Balkan countries -- should accelerate with economic growth and achieve faster income convergence with European Union countries.

Otherwise, economic growth in Kosovo in 2017 is expected to reach 4.4 percent from 3.4 percent last year.

Despite the level of economic growth, experts on economic issues in Pristina have sometimes raised concerns that the average economic growth rate in Kosovo is insufficient and without impact on the welfare of Kosovo citizens.

Alban Hashan, executive director at the “Riinvest” Institute, tells Radio Free Europe that the rate of economic growth in Kosovo is the largest of countries in the region, but has the lowest basis for economic growth.

He correctly estimates the findings in the World Bank report, where states of the Western Balkans are said to need 60 years to reach the level of economic growth of European Union states.

The “in Kosovo's case means that growth rates that have dominated in recent years -- 3-4 per cent -- must double in order for Kosovo to accelerate the step with the European Union's level of”, Hashan says.

Ismail Kastrati, former head of the Kosovo Economic Ode, tells Radio Free Europe, that competent authorities must create business-making conditions, namely foreign investment in order to increase the level of economic growth, hence lower unemployment rates.

Kosovo's “, as the most underdeveloped country in the region, needs a seven - percent increase, to keep pace with countries in the region, developed countries, and to reduce unemployment rates. Otherwise, by 4 percent we can't reduce unemployment, but actually we can't hire the generation, which for the first time knocks on the door for employment”, Kastrati estimates.

Meanwhile, Alban Hashani, says that economic growth in Kosovo is based on increased consumption and increased public investment, but that these two indicators, according to him, are not very essential to affect the welfare of citizens.

Hashan also says competent institutions should create more conditions in the private sector in order to double the growth rate.

“should have economic policies towards the orientation of private sector investments in production industries, which can also increase the highest value and are commercial sectors. So they can ease the gap between exports and imports”, Hashan explains.

Even the World Bank report says private investment in countries where the public sector is still the main driver of the economy should be increased. Low and low productivity growth rates in the Western Balkans require improvements in the business environment, which can attract private investment and stimulate company growth.

Otherwise, according to international and local mechanisms, economic growth for 2018 and 2019 in Kosovo is projected to reach 4.8 percent.