Most Kosovars, with serious social status

A family's income and the level of prices of all products and services, especially the prices of basic food and hygiene products, are key definitions of the standard of living. In this context, Kosovo, its absolute majority, turns out to have a standard that leaves much to be desired and is characterised with heavy social evidence. Because, generally, the income of a family in Kosovo is relatively low, while when the price level of all products is considered, but also those of services (in health especially), family income in our republic is completely depreciated and in this way make it social, if we rely on international, miserable standards, completely unbalanced in favour of poverty, in favour of social exclusion and challenging to the survival of most Kosovars.

Risked by poverty or social exclusion in Kosovo can be counted by the poverty of income, which at the moment are numberless, people affected by severe material poverty and social poverty, which are equally frightening with high endors and people affected by very low work intensity, or affected by unemployment, which in Kosovo, however, for years, is disturbing. It should be said that the social imbalance with the emphasising trend of evident poverty in Kosovo is the first consequence of income poverty ( material-financial poverty) and the price raising of all products and services.

Low household income (in most of Kosovo families), low wages in both sectors, separately in the private sector, and high prices equal to prices in most countries of the region and Europe, even though Kosovars' salaries remain the lowest among these states to this day, if so, have decomposing the social crisis of Kosovars. As the prices, especially those of basket products, told me that no days do not mark enormations, in Kosovo wages have moved on foot to the turtle.

In some categories of Republican residents, such as pensioners, they have not even moved for years. With 100 euros old-school pension, as long as the majority of Kosovo's seniors have pensions, there is no way to burden the social situation of these people. So today we have this social situation in our country, where the purchasing power of most residents has dropped “on the ground”.

Although there are no precise evidence in Kosovo that would reflect at least approximately the data on the three components mentioned and applied by EU statistics on income and living conditions (EU-SILC), some other statistics that are defiling in Kosovo and being prepared by state institutions, but also by researching the association of civil society, in a way dissecting and reflecting the social and poverty-damaged situation of a shocking number of Kosovars.

Meanwhile, Kosovo under current social and economic circumstances is not only failing to ease poverty, but worse, is continuing to deepen it. And, Kosovo continues to be unscathed today. It's the poorest in the region and with a seriously heavy social situation. Only Albania, perhaps very close, for poverty.

More specifically, even according to data about the world's rankings from the rich to the poorest 2022, published in April of this year, Kosovo turns out to be the poorest state in the region, ranking 105th in the world with $13,964 per capita income.

The magazine “Global Finance”, which offers economic reports, lists or even financial news, has published the rankings of countries of the world from the richest to the poorest in 2022. The figures refer to the International Monetary Fund (FMN) in the publication “World Economic Respect, April 2022”.

According to these data, for the first half of 2022, Kosovo appears to be the poorest state in the region, ranking 105th in the world with $13.964 per capita income. Albania ranks 90th among 192 countries, totaled in analysis with GDP per capita, with $17,383.

Measurement of rich and poor countries referred to GDP per capita based on the equality of purchasing power. The gross domestic product is converted into international dollars using purchasing power equality rates. According to the ranking, Kosovo and Albania are the poorest in the region, ranking 105th, respectively, 90th. Montenegro leads in the region as the richest country with the highest GDP per capita, given the equality of purchasing power. It's ranked 69th in the world with $24,878. Next comes Serbia and North Macedonia, ranked 72th and 78th, respectively. Bosnia and Herzegovina in this ranking stands 88th with $17,471 per capita.

According to the Statistics Agency (ASK), unemployment in Kosovo is above 25 percent. KSF's latest data on the labour market show that out of over one million working-age citizens in Kosovo, over 350,000 are employed, while over 120 thousand are unemployed. Always according to the AKS, around 750 thousand citizens are economically inactive, which means they are not employed, nor registered as unemployed, nor are they looking for jobs.

These facts also speak of Kosovo's real poverty: Recent data by the AKS about social welfare statistics in Kosovo show that by the end of June of this year alone, there have been a total of 25 thousand and 444 households in the social aid scheme (Social cases), totaling 100 thousand and 395 members.

According to World Bank data, about 18 percent of Kosovo's population lives in poverty, with less than $2 a day, while 5 percent of the population live below the limit of extreme poverty or less than $1.50 a day.

Economics analysts ask the government to invest more in private sector reinforcement, considered a major indicator of poverty reduction.

On the other hand, the prices of all products - especially basic food products - daily mark new enzymes. Inflation has actually reached close to 13 percent. Based on the Statistics Agency's data, from September to month of October, 0.9% inflation has been marked. Thus, minimum family basket insurance today has become a challenge for many families throughout the country. The rise in prices caused even a large number of the country's citizens to face extreme poverty.

Compared to October 2021 with October 2022, fuels have marked electricity of 56%, food oils over 40%, bread and cereal 30%, milk and milk products, and eggs 27% while fueling 20%.

Kosovo already competes very hard with powerful financial countries in terms of prices and prices, they are close, even beyond the prices of the world's powerful states. Raising salaries is an urgent need in the public and private sector in Kosovo, economy connoisseurs in the country estimate.

According to them, wage growth would help increase consumption, production and job creation. The Kosovo government, but also businesses should increase salaries in relation to inflation, analysts and connoisseurs and circumstances stress. But Kosovo, with this stage of economic development and lack of evidence of money, does not find it easy to raise wages, even though it is known that any wage increase increases consumption and production in the country.

The Institute for Advanced GAP Studies in the report “How does control of product prices impact inflation?“has estimated that significant price increases are burdening the well-being of households in Kosovo, as challenging as the electricity supply will be in the coming months. GAP through this report has called for approval of the new Law of Minimal Pague and the removal of the gas and diaper tax.

“Crahas the current government measures, it is necessary to adopt the new minimum wage, which would affect some 106 thousand private sector employees. Also considering release from tax obligations for gas and diapers, whose prices are designed to be controlled through new law”, GAP points out in the report, stating that “price control policy can harm the affected sectors”.

GAP recommends other forms of assistance to citizens, which largely envision lower tax rates or VAT and excise removal for certain products.

The chairman of the Democratic League of Kosovo, Lumir Abdixhiku, long ago in a meeting of the citizens of Obilics, said that the Kosovo government has decided in times of crisis to remain a spectator, rather than taking concrete steps in facilitating the economic crisis, is burdening it, failing to act and act that everything is in normal stages. Inflation today has reached record numbers ever in the history of the state of Kosovo, raising the prices of basic products has doubled, so the struggle for existence is the battle many citizens are facing. Their needs and demands are being given the answer to the alternative, so this exchange of ideas and thoughts will be the backbone of our government plan”, Chairman Abdixhiku has concluded.

On the other hand, Prime Minister Albin Kurti, as if he would not accept the country's heavy social situation. He through a Facebook note, thanking MPs for the budget vote, has said that this budget benefits everyone.

“More for health with more health professionals and more budgets for essential drugs. More for agriculture. More for culture, youth and sports and more for education. More for early development of children through more nests and more tutors and day - care staffs. More for children through additions to them and more assistants for disabled children...”, Kurt said in the Assembly yesterday.

In addition, during his speech in the Parliament, Kurti has said that they are aware of the serious economic and energy situation, which has been caused by Russia's war in Ukraine, but that this draft budget is meant to be fully assisted by citizens. Despite the prime minister's good words and optimistic promises, it remains to be seen how much these projections will be experienced and how much will be assisted by citizens' 2023 budgets. Winter is on the verge. Electricity shortages for Kosovars are transparent, while not meeting demand -- both by officials and by distribution and supply companies -- for the return of electricity prices. This is the expected situation Kosovars will face in the coming days. /Economic Bouletin