12 minutes agoPandemia lowered exports for 4.4m euros for month of April
Periskopi(6 years ago)
(6 years ago)The World Health Organisation (OBSH) on March 11, 2020, announced the public opinion that COVID-19 is officially declared a pandemic, having included 114 countries in the world. According to “Worldies” from December 31st, 2019 to June 25, 2020, total of 9,456,036 cases of COVID-19 and 483,247 cases of death were reported, Kosovo records. Economic consequences from [...]
According to “Worldies” from December 31st, 2019 to June 25, 2020, total of 9,456,036 cases of COVID-19 and 483,247 cases of death were reported, Kosovo records.
Economic consequences from the pandemic COVID-19 have also affected the Kosovo economy. The World Bank has seen economic decline in Kosovo at 4.5 percent in 2020, but will return with positive trends during 2021. This economic downturn in Kosovo also affected the decline in exports in April for 4.4m euros.
Burim Piraj, one of the leading producers of processed meat products, said they are now in a difficult situation. “The change is enormous, the products we've exported are gastronomy related mainly to pizzeria, and since the pizzas in Albania have been shut down” and our activity has dropped markedly. Another added that there have been reductions of export value. “As a consequence of the pandemic caused by COVID-19, we made a very reduced export to 10% of the regular value”, he said.
The Adriatic Stavileci, spokesman for Kosovo Customs, declared for the New Age in April, there was a decline in export value in the amount of 4.4m euros (from 34m euros to 28.5m) compared to the same month in 2019. During March 2020, the export has undergone no changes after maintaining the same trend, so we have had 28.5 million exports compared to March 2019, when we had 27.1 million. The Adriatic Stavileci said.
In this regard, Economy Professor Muhamet Mustafa from the Riinvest Institute has stated that given the pandemic circumstances these export trends have been expected. “The 13% reduction compared to the same period in 2019 is not surprising when we consider the conditions our exporters worked on, an even greater decline could be expected. However, monthly export trains know oscillations for various reasons, so to give a fuller assessment, we may have to see May, or at least a quarter. I have many logistical obstacles that could deepen this drop” further, Mustafa said.
The export sector, which is derived from the processing industry, must take due care of the government. “The exporters generally need systematic support, with the government to help with indirect measures in increasing competitiveness, certificate standards and quality standards. There is no other thing than other businesspeople, but the production sector, and under it exports should have the well-deserved care and be dealt with with with appropriate care”, Mustafa said.
While Kosovo Economic Ode Chairman Berat Rukiq has told the newspaper The New Age that the decline in exports is expected even further because of the decline in global demand, which, according to him, would have impact on us as well. The export rate is expected because of the decline in demand in global markets.
Exports will be damaged and for us this has huge impact. As little as we've exported, this is important to us, especially for some sectors that have just begun a slight increase in production and export. To keep in play and survive these sectors the particular recovery fund window must be export”, Rukiqi said.
A special export survival fund from the consequences of COVID-19
The chairman of the Kosovo Exporters' Association, Nexhat Hasani, has said, given Kosovo's pandemic export circumstances, will face a more severe economic situation.
He has appealed to the Government of Kosovo to have a special fund for exporters. “Based under pandemic circumstances is real about the loss of exports and will no doubt spend five or six months to recovery. We're in an economic crisis, if not in collapse, and it's gonna be a problem getting ourselves behind this mess. However, without institutional assistance it is a problem that manufacturers will recover and have economic recovery. Kosovo's government, should make a special fund for exporters, as emergency package is welcome but not enough for the recovery of producers and exporters. The government package is welcome, but the aid is small, we've also been in crisis without this pandemic, which will deepen the pandemic and the economic crisis. Therefore, the government should divide more tools for producers, especially for exporters”, he said.
Hasani: The Italian state of aid from 400 billion euros has earmarked 200 billion euros for export.
The chairman of the Kosovo Exporters' Association, Nexhat Hasani, has cited Italy's case as an example of assistance offered to exporters, with 200 billion euros divided from the amount, is dedicated to exports.
I would not like to compare Kosovo with Italy, since we are a small country, but I just want to take it parallel. In Italy, 400 billion euros have been allocated for economic crisis, while 200 billion have been earmarked for exporters only. So I say that institutions should do more to help the economy, it's a much more serious situation for those who are unemployed, so they would be able to step in on the job market or open small businesses with government funds, or the International Monetary Fund and the World Bank get tools to invest in Kosovo's economy in order to get out of the crisis. Special funding for exporters is one of the key parameters affecting economic development, supporting direct capital investments”, he said.
