Rukiqi: Government Takes Measures for Country to Go to Economic Crisis

The chairman of the Kosovo Economic Ode (OEK), Berat Grakqi, has said inflation is expected to be among the highest in post-war history, due to the economic crisis.
According to him, this will directly affect the welfare of citizens' lives, adding that we may have a bidding crisis that is related to the possible lack of products.

It's high inflation and will certainly be among the highest in post-war history. This will create many challenges for us, since increasing the cost of living has a direct bearing on the welfare of citizens' living”.

This will affect overall domestic consumption. And this will also reflect on economic growth figures. We are now in a phase where we can have a bidding crisis that is related to the possible lack of products, and that only adds the dose of the inflation problem”.

He has called on the Government to exploit all possible policies so that the country does not risk going into an economic recession.

Therefore it is a call for Government to exploit all possible policies so that our country does not risk going into an economic recession. Anyone who says there is no economic crisis ignores the problem because high inflation is a sign of crisis”.

While adding that the country does not have high rates of investment for them to be endangered by the crisis situation.

As for measures that should be taken in such cases, Rukiqi says that a review of the TVSH rate should be made, a specific period of suspension of the collection of oil excise, wages will be revised on the basis of inflation rate, and a part of the transport of goods is subsidised.

It is not that Kosovo in the entire post-war period has been attractive to foreign investment, so we cannot talk about any major risks unless there are higher rates of investment. Measures must be combined with the inflation problem. In various countries there are different monetary policies that we do not have. We have to preserve an economic growth dynamic that allows businesses to be out of control by reducing purchasing power”.

For the sake of not being influenced by purchasing power, purchasing power should be stimulated, and this is done by taking actions that affect price reductions. One is a review of TVS or zero or 8 per cent rate for products that are essential and affect the consumer basket. For a specific period of time, the collection of oil excises, or at least for the increased price, should not be collected the same excise. The option can also be seen for wages to be revised on the basis of inflation rate. The possibility is to subsidize some of the transport of goods that are important to the consumer basket”. / EO