The difficulties didn't go away by 2020, hard economic year put forth 2021

Limited measures against businesses contributed to annual circulation of over 1.2 billion euros, and thousands of business activities were extinguished.

As a result of the pandemic, over 60 thousand workers lost their jobs according to the Statistics Agency.

And on the other hand, the state's support was delayed, scarce, and equally divided.

This form of support has been criticised by economic connoisseurs who predict a decline in economic growth of up to 8 percent and a difficult year for the economy even in 2021.

Researchers at the GAP Institute, Bland Hyseni, tells Kosovo that the future government must draft an economic strategy to get out of this economic-Social crisis.

Hyseni has told of business activities that suffered huge financial losses in the pandemic and those that did not feel the crisis and marked increases in revenues.

“We have several businesses that have faced deadline restrictions or operating space that have declined in revenues, but still have been able to operate some of this time during the pandemic, and we have another part of the businesses that have continued working almost normally. Therefore, these various measures or restrictions on businesses have made it not the same as all businesses. This is also seen in Kosovo Tax Administration's translation declaration. The art, collection, and recreation industry that has been largely affected by restrictive measures has a decline in circulation of up to 80 percent. Then come these real estate activities, transportation, storage, accommodation, restaurants that have dropped 43-44 percent. Then there are other categories that have had fewer limits on them to those that had no limits at all, such as drugs or the water power supply, which have had increased revenues during this period. On the other hand, the government's assistance has also not taken on these business losses and has been equal to all. One of the last aid provided by the government is this portion of 60m euros given on the basis of the number of workers, and not on the basis of economic damage”, he stresses.

A positive thing about the Law on Economic Recovery, according to Hyseni, who has also received support from all political parties, is that of increasing the guarantee of credit guarantees, which enables them for next year in hopes of increasing investments.

However, he is facing a difficult year in 2021.

“Viti 2021 will be difficult to bear with business, because it is an accumulated debt throughout the year that will no doubt be reflected in next year. As difficult as it will be, it will depend on the beginning of the citizen vaculation”, Hyseni says.

University Professor Muhamet Sadiku has told Kosova Preris that the pandemic has suffered a big blow even in the economic sphere for all states in the world, and in particular negative impact has had on small states such as Kosovo and developing countries.

Hence, he has asked the government for strategy and economic offer to revive the economy and employment, as nearly 80 thousand workers have been lost, says the workplace.

In addition to that, Professor Sadiku has said international fund information is needed.

The greatest “needs are to generate market bid to revive businesses, revive employment, revive trade exchange, improve the social life of the population. I have in mind that the government has made efforts with the means a social infusion has to do in Kosovo. To do an infusion for its businesses, but out of the game in this strategy I am calling recovery has remained the incorporation of external funds which will be significant in the economic revival of states in general, but especially the states of the Western Balkans. Therefore, there is a need to reduce the effects of gross product and employment levels along with this national effort to react. Kosovo should do well not to have the share of international funds inform and indeed have a clear, sustainable strategy, which will not be worth three to four months, but a strategy that will apply in the last two years so that Kosovo can become a normal position that was before this disease began...0343. Kosovo would have to make a comprehensive analysis of the economy's position as soon as possible following the action of pandemic, position in the employment sector, in the social protection sector. The estimates are that during this period about 80 thousand people have lost their jobs, and it is required that with further analysis this major social shock, which took place in Kosovo”, he says.

Professor Sadiku adds that if this trend of pandemic influence continues with this shock, there may be a decline in economic growth of about 8 percent, which is very serious in the case of Kosovo.

This economic downturn is being linked to political crisis.

Former head of the Kosovo Economic Ode Safet Gerjaliu says Kosovo has no luxury of having three governments within a year.

“Political failure in 2020 in Kosovo needs a lesson that should not be repeated in the future. Kosovo does not have the comfort and luxury that within a calendar year it will have three governments, a poor state, a new state, and I believe this undermines the future and narrows the prospects for Kosovo citizens. I want to believe that any government that comes next will turn the history page to the future, not the past. The economy of knowledge, health, rule of order and law must be the main pillars, but above all, it could be targets. However, if political unity is not achieved, then we will be a country that can be declared failed. This does not deserve the sacrifice of war, this does not deserve the citizens of Kosovo. Kosovo's youth deserve a prospect and a brighter future”, Gerjaliu declares.

On March 13th, 2020, since the first two cases were presented with Coddy-19 in Kosovo, the country as if other states were taking measures for total closure by June 1st. The need for a state support for citizens, workers, and businesses was great, but since then only two packages, the emergency fiscal package, and late the Economic Recovery Law, which also allows for the withdrawal of 10 percent of the Trust.

At this time some public companies, Kosovo Telecom, “Trepca” and others were not financially well. At the time, there were dismissals of board members and appointments to public companies by the Kurti Government, which thus continued with the Hot government.

The year 2020 characterised Kosovo even with contracting budget revenues, which are meant to be over 300m euros. As a result of these developments, the commercial deficit in the goods account during this period registered the value of 2.26 billion euros, which represents an annual decline of 11.4 percent.