KB: About two thousand businesses close in Kosovo within the year

On average, about two thousand businesses are closed in Kosovo annually. This trend of bankruptcy and rest of business activities in recent years amounts to billions, according to data from the Kosovo Alliance of Business, (AKB).

GDP Chairman Agim Sahini has said that the disappearance of businesses in Kosovo is a continuous trend since 2002.

He says the GDP measures entrepreneurship trends over the years and that the average opening average, as he says, goes to about 8,000 businesses a year, while closes about two thousand businesses a year.

Sahin told EO that if a business has not created income for itself and for the state for more than six months, he feels that it has eliminated his activity informally.

Kosovo's “Doing Business is an ongoing trend since 2002 and around. The GDP measures entrepreneurship trends over the years and the average is somewhere that has opened around 8,000 businesses a year and closes an average of two thousand businesses a year, and this is an average trend over the years, but the trend of bankruptcy extinction, rest of business in recent years is billions of times1>, Sahin said.

Sahin points out that to eliminate business in the official form is a busy procedure and businesses, so he often shut down his activity but officially do not arrive because of procedures.

The number of these businesses in the last 4 years is about 18 thousand businesses that are supposed to have had one to two employees, and that number could be very high compared to the new businesses that are open within 4 years, and within 4 years have opened 42 thousand and 900 businesses that are supposed to have had one to two employees that have been employed on average about 55 thousand employees in the new companies. It is noteworthy, however, that new registered companies often register and do not operate, while the extinct companies have been working and running without activity or good for themselves, for the company and its family”, Sahin said.

Sahin said the Kosovo youth's departure included all professions and that now, according to him, it is damaging companies.

While, for wages in Kosovo, he said they have increased markedly, “from 2002 until 2023 salaries in Kosovo have increased to 202 percent”.

But despite that, he indicated that citizens are leaving Kosovo.

The Kosovo employee's “is of all professions, including ordinary workers, professional workers, engineers, police, soldiers, doctors, pharmacists, nurses, and this is a 4-year trend of over 200 thousand citizens in the country. Over 35% of them have been employed and had a salary of over 400 euros, and that is to us a major concern that we are freely losing our minds to say of Kosovo professionals”, Sahin said.

He said that the state should do its best to stop the trend of escape, create opportunities, and also increase wages, which, according to him, directly affects the growth of living standards.

If we take the salary growth trend from 2002-2004 to 2023, salaries in the public sector have increased 202%. In the period 2004-2015 alone, 150% salaries in the public sector have increased from 2015 onward, and 50% have increased by the total value of 202%, while in the private sector from 2004 to 2023 salaries have increased 64%. On average, that's what inflation has been like in 2002-23. Therefore, salaries remain the main problem of why citizens flee our country, or why it requires a living standard better each citizen of the country, each profession and we will have to create these conditions, whether in the private or public sector, that our workers have minimal life provided with their salaries in order to stop the escape trend”, he said.

Sahin said the consequences of the country's economy are high and visible because, as he claims, of the 213 thousand employees who have fled, 135 percent are field professionals. Hence, this alarms that it reduces the labor force.

“The consequences are high and are evident from 213 thousand fugitives, about 35% are professionals in different fields that have been in the work of both the private and public sector, and this makes us poor the labor force in the labour market and reduces consumption simultaneously and poverty of the night market, and all these are domestic poverty”, Sahin said.

Meanwhile, he said the competitive power in Kosovo is guaranteed with the Kosovo Constitution of Article 10 and are free and open market, and therefore Sahin said they have the right to open companies and find workers abroad.

The competitive campaign in Kosovo is guaranteed with Kosovo's constitution Article 10 and these are free market and open market. Therefore, we also have the right to open companies and find workers abroad. This trend has continued in the past year, where over 5 thousand foreigners have come to Kosovo and work. This is a concern for us, because we have our young people here. These guys go somewhere and we get somebody. So this is probably not the right of Kosovo institutions that do not take concrete action to stop this negative” trend, Sahin said.

Sahin said that after the market pandemic has been opened and there has been artificial growth, inflation also stresses that it has negatively affected the country and the economy. The economy of the country during its trip has had shocks, different turbulences, of course growth, but the growth of the country's economy will be assessed as long as it left a two-digit figure, if we appreciate that when we had greater investments, then they were before 2020. If we appreciate it when there was greater growth in the figure it was 2022, which was the largest economic growth of two digits, but because it was after the close of the pandemic the market opened and it was an artificial increase, so inflation also made it its own. Inflation has negatively affected the country and the country's economy, but Kosovo state institutions have taken symbolic action to increase the country's economy and fight poverty and fight inflation that does not depend only on us, but still Kosovo and its economy are walking thanks to the private sector without support from the state”, Sahini concluded.