Economics expert shows what the economic situation will be after the coronary

Mustafa has said the situation behind the pandemic will be difficult and there may be a decline in the local economy and that the effects are already being seen.

According to him, Kosovo has limited opportunities, so this burden cannot be maintained only by the state budget and that the crisis with its pandemic and dimensions, which now lay the need for a budget restructuring.

„Since now two months are still visible, the effects of which have not yet been valued accurately. In addition to the package of measures the Government took, I appreciate that economic growth will drop from 4.2 to 2.5 % . I would be pleased if we kept last year's GDP level, or if we had a reduction of more than 3.5%. So you should expect a bigger contraction. However, I think that a more comprehensive and subtle assessment of the effects should be made as quickly as possible so that even interventions will be more effective and focused where this effect is most needed socially and productive for economic activity“, Mustafa said.

He has said that Kosovo's economic opportunities to cope with the situation are limited.

„But our options are limited, so I can't just keep this burden on the state budget. Everyone has to do, say a state consolidation program by making the most of the possibilities and reserves that the government has. The pandemic crisis and its dimensions, which now lay the need for a budget restructuring. In this restructuring, of course, the most productive way of supporting the private sector should be seen. But this should be viewed carefully and studied better, not under pressure... For example, see the effect of subsidising salaries at 170 euros, or could be better used. Then it suggests that the entire burden of this situation cannot only hold Kosovo's modest budget. So, at least at the moment, there's an excessive euphoria with demands of associations and trade unions addressed to budgetary interventions”, he said.

He has also commented on decisions and measures made by the Kosovo government, as well as the impact of these decisions on local businesses.

”I think that the published package of government measures in general is in the right direction, including the social aspect and even the private sector and the stimulus for those at the forefront of the fight against pandemic. These measures are also the most in the line of what business association required. For starters is good. Furthermore, it should be reacted to the need, but much more selectively social assistance and support increased production and service and employment level maintenance and possibly generate new jobs. So we should do an assessment and study on this”, he said.