Poorest Kosovars in the region, with lower incomes

According to recent data from the Kosovo Statistics Agency, Bruto Product for 2017 was above 6.4 billion euros, while the resident's domestic Bruto Product was 3,566 euros, since real economic growth was 4.2 percent.

Bruto Product is the main and most important macroeconomic indicator in the National Accounting System, which presents the final results of production in all activities of residential production units.

Bruto Product is calculated according to three elements: the approach of production, the approach of expenses and access of revenues to the Republic of Kosovo.

Bruto Product per capita resident in countries of the region and in Kosovo, according to International Monetary Fund data, for 2017:

Montenegro 6,646 euros

Serbia 5,126 euros

Macedonia 4,757 euros

Bosnia and Herzegovina 4,473 euros

Albania 3,983 euros

Kosovo 3,372 euros

Despite the fact that Kosovo counts last in terms of living standards, compared to the countries in the region, agency data which includes 2008- 2017 show that during this period, there has been a constant growth of BPV, as in 2008 this rate has been 2,200 euros per head.

Otherwise, experts on economic issues consider this value insufficient to address the fundamental problems Kosovo has.

Ismail Kastrati, former head of the Kosovo Economic Ode, says that although there has been an increase in the level of Bruto Local Product for Kosovo citizens in recent years, the rate has failed to ease unemployment and poverty.

“The BPV in Kosovo has moved at a relatively good pace, but not to catch Bruto Product per capita resident of the region and reduce the high unemployment rate in Kosovo. Usually BPV these 17 years have increased an average of 3.6 per cent, which does not ensure a reduction in unemployment and does not keep pace with the countries of the region”, says Kastrati for Radio Free Europe.

Even Berim Ramosaj, professor of economics at the University of Pristina, says of Radio Free Europe, that compared to other years, there has been an increase of the local Bruto Product, but that many do not provide standard and do not generate good living prosperity for Kosovo citizens.

You cannot gain education, knowledge, social, social, and educational service without prosperity. So it's very low, but considering where we've been and where we are, I believe it will have effects in the future”, Ramosaj says.

Ramosaj says competent authority should create the conditions of doing business, starting in the production industry, so that Kosovo will be able to increase overall economic development, hence Bruto Product.

Taking into account the economic development we have very low, there is no possibility that BPV will be higher for this period. However, it is claimed that Kosovo, if it wants to be along with other countries, will no doubt have to increase domestic production and service. All that is created within a year in a society such as Kosovo, and when it is divided with the number of residents, it is undoubtedly the highest”, Ramosaj says.

And Ismail Kastrati considers that rule of order and law, eliminating corruption and economic crime, ensures the growth of Bruto Product's per capita income.

“Autorities in the first place must create legal security to attract foreign direct investment and create new added values, that means investment in the production sector. That alone would create the possibility of Bruto Product growth and that not only from consumption but from production. Currently determinant of growth that BPV is consumption, which is partly financed by remittances”, Kastrati points out.

On the other hand, Bruto Product per capita resident of the European Union is 29,396 euros. And to reach the Western Balkan countries this income value, according to the World Bank, it takes about six decades.