5 minutes agoIMF sends message to Kurti Government: Fighting corruption, inflation in 2022 was over 11%
Periskopi(3 years ago)
(3 years ago)The International Monetary Fund's Executive Board (FMN) has held on 25 January annual consultation for Kosovo, where it was concluded that increased energy prices and food items following Russia's war in Ukraine have reduced demand and real growth Bruto Product for 2022 is estimated to be from 2.5-33, following recovery [...]
The IMF has estimated that the average inflation rate for 2022 has been over 11%.
The IMF Executive Board has urged Kosovo to increase transparency and fight corruption, which is estimated at serious points to improve the business environment in the country.
“The Executive Board urged authorities (of Kosovo) to address governing gaps, further increase transparency and reduce corruption, which remain essential to improving the business environment in Kosovo and boost potential growth. Directors also underlined the importance of increasing the capacity of green energy generation to boost energy security and reduce emissions”, said in IMF announcement.
The organisation has projected growth of economic activity of 3.5% in 2023.
This prediction depends substantially on the assumption that international goods prices will fall in 2023. Uncertainty about perspective remains high; Higher energy prices represent the main risk. Although sound fiscal and financial policies will help ease the impact of negative risks, structural reforms addressing infrastructure and governing gaps are essential to diversifying Kosovo's growth engines and create conditions for greener economic growth”, it is said further.
Similarly, the Executive Board has praised the quick reaction of Kosovo institutions' policies, which, according to the assessment, have contributed to easing the impact of commercial crises on families and businesses.
“They encouraged the continued commitment to prudent policies combined with a revived agenda of structural reforms to unblock growth. The Fund's continued close commitment could help Kosovo advance its reform efforts and overcome political obstacles”, it is said further.
