BQK Governor: Trade deficit is hindering economic growth

As long as the inflation rate, according to him, is expected to decline in the second part of 2023, Mehmeti says more needs to be worked for economic structure to be changed in favour of production companies.

Kosovo depends extremely on imported products, while its export value is much smaller.

In an interview for Radio Free Europe, Mehmet also talks about national currency and says the CEC has taken all measures to ease the negative effects of its failure.

I consider that such economic growth following all these negative pressures, following the Russian pandemic and aggression in Ukraine, will largely address all the problems facing Kosovo citizens and will positively affect the growth of their well-being.

The “is one of the factors that have affected the global economy, as well as Kosovo. And, actually, our expectations are that in the second six months of 2023, we have a 6 percent inflation reduction. This, to a large extent, will affect the taxpayers' capacity, which will then affect consumer growth as the main component of economic growth in the country.

I consider that such economic growth following all these negative pressures, after the Russian pandemic and aggression in Ukraine, will largely address all the problems facing Kosovo citizens and will positively influence their welfare. When I spoke about imports, exports, I mentioned the trade deficit. Trade deficit is one of those [facts] that negatively affect economic growth or economic activity in the country. More work needs to be done in order to have a change in the country's economy structure. As our economy is dominated by commercial companies, more work needs to be done in terms of changing the structure of the economy in favour of production companies”, Mehmeti said.