Hoti: As soon as the ease of business and human circulation measures begins

Hoti has said that the ease of measures should be made, but always by respecting health guidelines for preventing the spread of pandemic caused by COVID-19.

The LDK official has said it is important to keep the production/service chain uncut, as the economic and social costs caused by the pandemic will be smaller, on the contrary he says it will take years for recovery.

If we manage to keep business on the market and keep the production/service supply chain in uncut, then the economic and social costs of pandemic will be lower, both for families and the state. On the contrary, if you lose this opportunity and businesses get out of the market, then production and employment will stabilize to lower levels and it will take years to get back to the first level of pandemic”, Hoti wrote.

Full response:

Pandemia by the former-19 could cause economic shocks, but should also be seen as opportunities for major quality changes in Kosovo's economic structure with the potential for quality long-term growth.

This pandemic will undoubtedly cause an economic shock, negatively affecting production, employment and exports, and that only as a first wave. The full impact will be felt in the second half of the year, when the multiplication effects surface through the decline of investments and remittances that we are highly dependent on.

The economic impact of this pandemic may be unprecedented, because at the same time we have aggregate supply collapse and a significant reduction of aggregate demand. The aggregate offer has collapsed as firms are closed with administrative decisions or as a result of the break-up of the bidding chain of ready-made inputs and restrictions on the movement of people/workers. Meanwhile, statistics show that employment has declined by about 1/3, resulting in income and aggregate demand.

It is very important that the initial softening of free circulation measures of businesses and people, but by respecting health guidelines to prevent the spread of the virus.

Relief in the circulation of businesses, the production/service supply chain and people, along with the immediate financial support of businesses to cope with minimum operating costs (or survival costs during this period), would prevent the total exit of businesses from the market.

If we manage to keep business on the market and keep the production/service supply chain unreachable, then the economic and social costs of pandemic will be lower, both for families and the state. On the contrary, if you lose this opportunity and businesses leave the market, then production and employment will stabilize to lower levels and it will take years to get back to the first level of pandemic.

In view of another perspective, economic measures to cope with the consequences of pandemic, if properly designed and mobilise sustainable financing channeled into the economy where it needs to and where the effect is maximum, then a new moment for rapid economic development in Kosovo can be created. In such a case, major changes in the economic and sectoral structure would be fostered, placing Kosovo's economy in a higher growth and long-term growth trajectory, with higher and more quality employment.