High trade deficit suggests need for economic reform

The American Economic Oda in Kosovo organised the table on the “production sector development industry”, where a research for the production sector situation was introduced.

The executive director of the American Oda, Arian Zeka, said the figures that have been released are not very hopeful.

“The study analyses the state of production sector in some indicators by the labour force, internal trade, support infrastructure and financial approach and quality infrastructure”, Zeka said.

Zeka said the recommendations in this analysis are also based on OAEK preliminary studies.

The recommendations we give to him are continuation of fiscal measures and the creation of developing tax facilities”, he said.

Visar Hapciu, head of the Institute for Economic Research, said that 40 production companies have been polled for this research.

For the purpose of this research, we have conducted surveys with 40 production companies. Most businesses have had between 50 and 250 workers. Businesses have provided a satisfying assessment of the cost of the workforce. The labor force index has marked scale 4.88. After the index we've asked businesses about the fiscal environment. We see a more positive approach, since legislation over the years has improved. The international trade index has received the best assessment of businesses”, he said.

The second most negative area, according to the reports, Hapciu says it is the delay in payments. The weaker assessment has been given for rule of law and domestic trade.

The recommendations from this research, hapciu, said they are addressing the vacuum of skills, changing labour law and promotional policies for export growth.

Finance Minister Bedri Hamza said Kosovo has an affordable state debt, and how the ministry is focused on maintaining a macro-friendly environment field.

We as governments, but I personally take very seriously because it's a study that accurately identifies areas where we need to improve. We as the minister of finance are focused on maintaining a field of macro-fiscal environment. In the event of loss and macro-fiscal risk, everyone will have a problem. Kosovo continues to have stable positions, with lower state debt in the region. We've taken some reforms. Given the high trade deficit, we need to change to make economic reform”, he said.

Durim Limaj from the Ministry of Trade and Industry said the Kosovo manufacturer is discriminated against.

Kosovo producers are also discriminated against in export to CEFTA member states. We're interested in creating a market for local production. We are in the process of drafting for the Internal Trade Law, which will address some of the issues you've mentioned in the study”, he said.