Economics are badly hit by pandemic mismanagement

Coronervirus' pandemic has shaken economies around the world and undoubtedly impacted Kosovo, as there has been a decline in Bruto Product (BPV) by minus 6 percent in 2020.

According to World Bank data and the International Monetary Fund, this decline in 2020 made Kosovo the largest decline in the region, after Montenegro marking a decline of minus 15.2 percent.

Albania has had a drop of minus 3.5 percent, until Serbia has had a drop of only minus 1 per cent.

The fall of Bruto Local Product in Kosovo, according to Drirt Elshan, data expert, has occurred due to the mismanagement of the crisis caused by COVID-19 during 2020.

He cites the main reasons that have led to the decline in economic growth in Kosovo.

“The lack of a clear strategy against COVID-19, the collapse of a government at the beginning of the pandemic, the design of inappropriate policies for Kosovo's circumstances and the economic structure that Kosovo has. The delay in law approval, for example, the Law for Economic Recovery has been approved by the end of 2020”, Elshani says.

He tells Radio Free Europe that communication centres for crises have been missing in Kosovo, where citizens could present problems or receive assistance. Elshani also says there has been a lack of digital data collection and management, so that policies can be based on data rather than adhoc policy.

The aid the previous government provided, according to Elshan, has not been directed directly to citizens and distribution has not been appropriate.

A drop of Kosovo's BPV in turn has huge consequences, either for increasing unemployment or for further poverty of the population in Kosovo. The new government has said it will support workers and businesses as well, and this is very encouraging, because it is very important that workers and citizens rely directly on”, Says Elshan.

The Year 2021 Hope for Economic Growth

Visar Vokri, programme director at the Riinvest Institute, tells Radio Free Europe that the economic downturn has affected businesses, family economies, poverty and employment.

The reasons for such a decline have been the crisis of the coronary pandemic that began as a health crisis but also developed into an economic crisis.

In Kosovo, the main causes or main sources of this economic contraction, I can say, have been the decline in investments and tourism stemming from the diaspora”, Vokri says.

However, he also says that during this year, there is expected to be economic growth in Kosovo.

These projections are based on the assumption that there will be a reduction of the measures and there will be no other restrictive measures that will prevent the movement of goods and businesses from Kosovo to Europe and vice versa. We hope that the new government will be more vigilant and take proportional measures with the damage caused by the pandemic”, Vokry says.

He says businesses must continue to support themselves, but primary should be a population vaccine plan, so as soon as the release of measures and normality can be done.

Support for April End

During the week, Finance, Labour and Transference Minister Iron Murati held a meeting with business representatives. It agreed that 50 percent of the monthly wages were subsidised and that 50 percent of this month's rent costs be subsidised.

Tools for businesses influenced by the two-week closure are expected to be divided by the end of April or early May. New Measures Against COVID-19 went into effect on Wednesday, April 7th and will be in force until April 18th.

These measures forbid citizen circulation from 10: 00 a.m. to 05 a.m., except in emergencies. Gastronomial services are forced to suspend their activity from April 7th to April 18th.

They are allowed to work only with “services, take away”, “crege by custom” or receive orders without leaving cars. Under the Government of Kosovo decision, the activity of closed shopping centres is prohibited, apart from essential services within them, such as food shops and pharmacies.

With new measures, all high-risk infection distribution gatherings are banned, with more than ten people.