Economic crisis closed nearly 20,000 businesses

The head of the Kosovo Alliance of Business (AKB), Agim Sahini, has told Online Economy that the economic downturn in Kosovo is highly responsible, starting with unfriendly investment policies, bureaucracy, investment climate and lack of investment promotion.

The closed number of businesses is never known as accurate, because closing procedures are serious that people give up trying to shut down institutional businesses. According to our statistics, 2021 is a serious but no heavier year than 2020, where more than 20,000 businesses were shut down at the time, by the time of 2021, over 5 thousand businesses that some have officially closed, some have vacationed their activities by waiting for better days, and some have left business to come up with an investor. Last year, over 15 thousand workers were laid off.

Kosovo's “Work market is demanding daily professions. Although we have about 40 percent unemployed, there is a constant demand for professional workers. Economic growth this year will still be plus, but it will be the biggest drop in post-war history compared to 2021. This economic downturn is highly guilty, not favourable investment policies, bureaucracy, investment climate and lack of investment promotion, the global crisis that has affected Kosovo. Kosovo is a safe place for investment, but the departure of some investors from Kosovo is promoting the opposite, we had investors leaving Kosovo last year, and this has damaged the country's” image.

Sahin has also spoken of the minimum wage in Kosovo, with cases outside it remained KLA veterans. According to their statistics, the minimum wage would have to have 180m euros in circulation.

The country's “government has done nothing to restore the image through the new behavior of new investors in the country, which has caused the country to depend on foreign investments. The minimum wage, according to GDP statistics, would have to have a budget of around 180m euros in circulation, including veterans, and the Government has made a huge mistake that has ruled out veterans who have been part of the minimum wage, while with this bill it is already only the private sector, and which in most cases has not been a problem, the problem has been in micro companies that in Kosovo have multiples, Sahini said.

And economic knowledge Ismet Mulaj has said that with Kosovo's many problems of the minimum wage of 250 euros is insufficient for survival.

Global growth has caused some of the businesses to lose the markets they have had, and as a result of the loss of markets and the failure to follow fiscal policies by the Government of Kosovo are closing down. There are also businesses closing in on a lack of labor force. There must be several interventions, the current situation in Kosovo, to analyse problems one by one of a different sectors of businesses, and on the basis of this analysis to issue recommendations. Fiscal policies are instruments that had to help Kosovo's business as well as initiatives, grants, different support that would have been in the interest of business”, he has said.

The minimum wage increase, according to Mulayt, should be done according to one study, which says that didn't happen. Major damage to businesses, Mulaj says, is also being made to escape from the workforce, which he says will be mostly seen next year.

“To analyse the consumer basket, current business analysis, inflation, and on that basis minimum wage would have to be increased. We have not yet seen on which formula, or study has increased minimum wages. Businesses in the past four years have been facing a loss of labor force. This huge labor force escape trend will confront businesses next year. If we add visa liberalisation to Kosovo, there will be much more serious problems than the countries of the region, because the EU is home to youth”, he said.