In his regular column, Lumir Abdixhiku writes for Koha Ditore that the entry into force of the Stabilisation and Association Agreement (SAA) represents a new economic momentum for Kosovo, despite the views from few skeptics. The reforms set out in the agreement, not only regulate a new economic and trade relation between Kosovo and the EU, but they are also supposed to transform the structure of the Kosovo’s economic model. Abdixhiku claims that Kosovo has plenty of documents detailing economic problems, but what it does not have, is a clear idea on how to transform its economy.
“Unfortunately, even if all reforms set out in the medium term period would end successfully; even if every objective set out in these documents would be well implemented, Kosovo’s economic growth in the next two-three years would be rounded-up at around 4%”, writes Abdixhiku, adding that these estimates are also provided by the International Monetary Fund. Some of the problems that the Kosovo economy faces, according to him, include the fact that it relies heavily on consumption rather than investment; the business environment is difficult and there are no investment guarantees. Furthermore, more than 65% of the Kosovo workforce remains inactive and, above all, Kosovo is failing to generate new jobs. “This cycle needs to be broken”, declares Abdixhiku.
