The diaspora vote count is continuing, VV achieves the 53rd term, PDK remains at 22, LDK falls to 18
8 hours agoWorld Bank: The wage law can have a negative impact on economic growth
Periskopi(7 years ago)
(7 years ago)Delays in capital investment plans cause early elections and higher costs than the new public sector wage law was envisioned risk growth of 4.2 percent projected by the World Bank for 2020-2021. Meanwhile, economic growth is expected to [...] by the end of this year.
In the report “increased uncertainty” for the Western Balkans, presented by the World Bank on Tuesday, private consumption is said to add 2.9 percentage points to economic growth, thanks to the highest rate of consumer, remittances and wages in the public sector, and public consumption is expected to increase 1.6 percent, writes “Koha Ditore<x> today.
As far as wages are concerned, according to the BB, higher salaries in the public sector can pressure on salaries in the private sector, which can undermine the competitiveness of Kosovo exporters. Fiscal risks, according to the BB, could arise from spending on social categories, nonproductive capital spending and potentially lower performance of public-owned enterprises.
The contribution of investments in economic growth is meant to be only 1.1 percentage points, because the recent adoption of the budget Law led to the delay in executing public investment plans.
The 2019 elections could further delay the execution of the capital budget. Despite the strong increase in service exports, net exports are expected to drop 1.4 percent from economic growth”, the report said.
