6 hours agoBEC warns economic growth of 4.4 percent
Periskopi(8 years ago)
(8 years ago)The Central Bank of the Republic of Kosovo has announced that according to its projections, Kosovo's economic growth prospects in 2018 are positive, with the economy expected to mark a slight improvement compared to 2017, fluctuating an interval of 4.2 per cent to 4.4 per cent. “This improvement is attributed to the incentive of [...]
This upgrade is attributed to strengthened fiscal stimulus during 2018, particularly the one generated from government capital expenditures”, the CEC's Financial Stability report said.
According to the CEC, remittances and creditive activities, even during 2018, are expected to be sustainable sources for financing economic activity and that the external environment is expected to be favourable for the trade balance, given the high review of economic activity in Kosovo's business partner countries.
The financial performance of the company sector has improved, reflecting on improved credit quality from this sector. The best financial performance has, on the one hand, affected increased loan demand, while on the other hand, continued improvement of structural factors and conditions for access to finance have enabled increased credit to the company sector. The new credit for companies from the banking sector has increased by 35 per cent, marking the highest growth in the past seven years. Companies have also continued with increased financing from foreign sources, with external debt cases reaching 21.1 per cent of the total debt of companies”, the CEC Financial Stability report reported, public television.
According to the CEC, the total increase in the debt of companies has contributed to deepening the debt of companies to 32.9 per cent to BPV and the approach to countries in the region.
The companies have no direct exposure to changes in the currency course as a result of the highly low position in foreign currency. However, currency changes can influence business activity, especially commercial companies”, the BEC's Financial Stability report says further.
