Economic growth, increased employment: Dardan Sejdiu says Murati is doing basic manipulation

Economic growth, increased employment: Dardan Sejdiu says Murati is doing basic manipulation

Political analyst Dardan Sejdiu has accused Minister Murati of manipulating GDP growth figures. According to him, Minister Murati manipulates with basic economic concepts. Read the complete text: GDP growth numbers manipulation! Months ago Minister Murati had made a great statement from no Minister of Finance until [...]

According to him, Minister Murati manipulates with basic economic concepts.

Read the complete text:

GDP growth numbers manipulation!
Months ago Minister Murati had made a great statement from no Minister of Finance so far showed the economic growth figures in nominal terms.
For clarification, growth in nominal terms includes the effect of rising prices (Inflation) other than real growth that takes away the effects of prices, which even a second year college student in Kosovo knows. Especially this year's prices have gone up a lot, and this everyone knows.

When he gave this statement, he didn't say a word about real growth. An indicator used by every Minister of Finance in the world, such ministers who don't manipulate.
His Manipulation with data doesn't stop here. This goes on and tries to present the growth of the second quarter as something extraordinary, even as a result of the influence of Government or its ministry.
This increase, even greater in many cases, has occurred in all countries in the region. For example, Albania's economy in the second quarter increased by a total of 17.89 %. Montenegro's economy grew for 19 %, the same as Macedonia's economy. Only the economy of Serbia and Bosnia and Herzegovina grew by 13.7 and 14.7 %. But still, the growth of our economy over this period is below the average level of this region (Balkan 6 exclusion Kosovo).
The reason for this growth, even under the average of our region, is very simple: during the past quarter of the year every economy was almost closed, and when you compare the economic activity of the second quarter of this year to that quarter, it is very likely that there is an increase in this level.
And to show that this growth is almost entirely driven by the private sector and by this year's mass arrival, fiscal data from the Ministry of Finance's website needs to be analysed. It turns out that at the end of August (last data) the Government of Kosovo in its own bank framework has about 500 million euros. Looking at the rise of the bank balance of the past few months, it can easily predict that our state's contribution in late September could be about 600 million euros.
Much worse, this game reaches its peak when it publicly compares the worldwide Bank forecast growth of 7.1 to the famous panminal* figure of 7.9 %. These two figures are two entirely different things, and that's why they're not compared. Let's say that Kosovo only produces apples, and in 2020 from apple production had reached a nominal GDP of 100 million euros. This year the price of an apple was a million euros. In 2021 it is able to sell 105 apples, but at the price of nearly 1.05 million euros per apple. Nominal growth in this year is slightly above 10 %. But when the price effect is taken away (from 1 to 1.05 million euros per apple) it turns out that real growth (in terms of product quantitity or even real world services) is only 5 %.
So Minister Murati manipulates with basic concepts of the economy. Of course, this year's economic growth could be above 7 %, as the World Bank says. But economic growth can't help manipulation of data, nor the number show of municipalities!
Private sector and diaspora are the merites for economic growth, not the government and its savings!

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