OECA: Economic growth of 3.8% insufficient, leaders' statements that there may be conflicts affect investors

From OECA, they say that along current governance in Kosovo, dialogue between the public sector and private sector has been lacking even the creative policies, which, according to them, would lead to strengthening the private sector and greater economic growth.

OECH Chairman Arian Zeka has said that with this economic growth that Kosovo currently has and has had over the years, it will take decades for the country to be in step with EU member states.

No further than this week's, the International Monetary Fund provided its most updated forecast on Kosovo's economic growth rate, and this rate says economic growth during 2024 will be 3.8 percent, in fact, projected to be 3.8 percent. In such a situation for real, not one of us, much less the heads of institutions would not have to be happy, or satisfied with this growth rate as long as other reports, of prestigious international organisations say that actually with this economic growth that Kosovo currently has and has for the past few years will need decades to step with other aspiring states, EU” member states, he said.

Zeka has said the government has done little in terms of promoting the country's economic potential for attracting foreign direct investment. According to him, the country is characterising a facility in which investments in the real estate sector dominate.

He has added that the government needs budgetary spending for capital investments to achieve to the precise extent it is envisioned by law, since he says that in the past three years the government has not followed the dynamics of capital investments ahead of the law for specific budgets.

A little is being done in terms of promoting the country's economic potential for attracting foreign direct investment, little is being done for changing foreign direct investment structure. We continue to be characterized by a structure in which investments in the real estate sector dominate and that's what we refer to as investments in non-productive assets. Consequently, the country must change its approach to foreign investors and address what appears to be the main barriers preventing foreign investors from coming to the country. Capital spending, budgetary spending for capital investments should also be realised to the precise extent as provided with budgetary laws of the appointed years. This case I'm referring to the 2024 budget law, much more knowing that in the last two years, the government has really not been very accurate or has followed the dynamics of capital investments ahead of the law for specific budgets”, he said.

The chairman of the American Oda has called on state officials to halt statements that the country is at risk of any potential conflict with Serbia, this, according to him, repels foreign investors.

He has said that as a cause, the only foreign direct investment the country has is from members of the Kosovo diaspora.

The “differs greatly, that such statements come from the country's highest head of institutions are quite disturbing. Oda Americans in one of her statements this year have called for the halting of this record of inciting conflict. It is also unfortunate that, in one of the International Crisis Group reports, the actual possible strain of a deadly conflict between Kosovo and Serbia is listed as an obstacle to potential conflicts during 2024. This report is also similar to the country's executives' statement, of course, that investors consider. Consequently, we come to such a situation when free we can say that the only foreign direct investments we have in the country are really from members of the Kosovo diaspora, he said.

Zeka has indicated that she hopes the government will realise all capital investments previously made this year.

He has said that public-private dialogue has been lacking from this government and that creative policies that would lead to private sector empowering even greater economic growth.

“E cited lack of investment or failure to realise capital investment plans, as envisioned with the 2021-2023 budget laws. I hope that in the year 2024, which is the pre-election year in which all capital investments before this year will be realised in the territory. Capital investments have multi-progressive effects on the country's economy and therefore call on the government to implement all capital investment plans in the territory. As for economic governance in general, I'm referring to only one fact that after three years, only in February of this year has the National Council for Economics and Investments met for the first time, I believe it speaks enough. Even in terms of dialogue that has existed between the public sector and the private sector, but at the same time as I say the possibility that private sector acts will provide recommendations on economic growth and promotion of foreign direct investments. There has been a lack of dialogue, lack of creative policies that would lead to the empowering of the private sector and therefore to greater economic growth”, he has said. / EO