Kosovo imports less, but pays more

Kosovo Customs data for the period from January to May 20th shows that Kosovo has imported 1.6 billion pounds of various products, worth about two billion euros. During the same period last year, 1.9kg of products have been imported, costing over 1.5 billion euros.

In contrast, the amount of imported goods has dropped by 11 percent, while their financial value has increased by 21 percent.

Kosovo imports up to 90 percent of the products it needs from food to construction products.

Kosovo's Finance and Transfers Minister, Iron Murati, has said at a government meeting days ago that the rise in financial value of imports means increased revenues in state Customs is the result of economic growth in Kosovo and the decline of the informal economy.

Inflows into Kosovo Customs fill the state ark, just as revenues to the Kosovo Tax Administration. The latter, too, has made it known that between January 01nd and May 20, 2021, has raised about 229,000 euros, while in the same period this year, the value has reached over 303 thousand euros.

“There is no room for pride”

According to economic experts, there is no space for boasting. They say increasing the financial value of imports is not the result of institutions collecting budgetary means, but of rising prices in the world.

I think a part of this increase can only be attributed to Customs results, because the increase in prices has been impacted here”, says Naim Huruglica, former director of Kosovo Customs.

The prices of world products and services have begun to rise as a result of the coronary pandemic that erupted in March 2020. They have also given rise to Russia's war in Ukraine, which began in February, since both countries are major exporters of grain and metals.

In Kosovo, inflation either increased prices of products and services has been 11.2 percent in April.

Economic and Finance Professor at the University of Pristina, Wykan Bajra, says over 30 per cent of the financial value of imports is the result of inflation rather than increased consumption or economic development.

According to him, it also testifies to the reduction in the amount of imported products, meaning <x0 mic of purchasing power”.

There is no room for pride, but there is plenty of room to work. By concrete actions, not empty words, not gifts of charity, to ensure financial, economic stability and prosperity for citizens, because prices are enorme”, Bajra says of Radio Free Europe.

The Kosovo government last month has allocated 100m euros as a contribution to different categories of society -- pensioners, public and private sector workers, students and households with social assistance. However, economic experts have interpreted this as short-term contributions and not long-term solutions. According to them, the consequences of the economic crisis “cannot be eased with quick decisions”.

Furthermore, some Central Bank projections in Kosovo, published in March, have shown that Kosovo's economy, as a result of the war in Ukraine, will suffer slowdown in activity this year.

According to them, economic growth will slow to about 3.3 percent, down from 10.5 percent in 2021.

Inflation and Import in Some Balkan Countries

Inflation in northern Macedonia has reached over 10 per cent this year. According to the State Statistics Agency there, the value of imported goods in January ʹ March has increased by 29 percent more than in the same period of the year.

In Albania too, inflation in April has risen to 6.2 percent, while the financial value of imported goods has increased by about 27 percent.

However, REL has failed to provide any statistics from these two states for the amount of imported products if it has diminished or increased.