Insufficient economic growth, GAP shows how much capital investments were made this year
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The degree of realism of capital investments during this year was also low, even until October of this year, not even half of the planned investment budget was realized. This is what the executive director at the GAP Institute, Blendi Hasaj, says, who underlines that it is very important for the government to increase the pace of investments in the energy sector, in order to create a stable infrastructure for businesses.
In an interview for KosovaPress, Hasaj says that the issue of migration continues to be problematic for the country, to which he adds that the state is losing the most productive part of society, while demanding that the Government be more active in improving the education sector in Kosovo. In addition, Hasaj also spoke about economic trends, where he said that the economic growth rate of around 4 percent is insufficient for the country.
While he says that the degree of realism of capital investments is an annual problem in Kosovo even by the previous governments, he adds that this year until October the degree of their realization was lower than 50 percent.
"For the year 2024, with the data we have until October of this year, the degree of realism was lower than 50 percent, that is, not even half of the planned budget for capital investments has been realized yet, and of course this category should be more priority for the government, because it is the only category that enables it to fulfill its role in the economy, creating a basic infrastructure, advanced water supply systems or similar systems that also attract foreign investors, but also to encourage entrepreneurs to invest even further in production capacities. It is very important for the government to increase the pace of investments in the energy sector, to create a sustainable infrastructure where businesses are secure in terms of electricity supply, therefore, it should be a priority for the government to identify these obstacles which are affecting an unsatisfactory realization of capital investments". underlines Hasaj.
The challenge for the country, Hasaj says, remains migration. According to him, from the analyzes they have made, a tendency has been observed that the people who migrate are people who were either employed in Kosovo or have a high education.
While talking about the trend of the country's economic development, he considers that an economic growth of 4 to XNUMX percent is not enough, but according to him, a greater growth is needed for Kosovo to approach the standard of living of the citizens of the countries European Union.
Meanwhile, in the latest report of the World Bank, it is predicted that Kosovo will have an economic growth rate of 3.8 percent in 2024. According to the World Bank, for the year 2025, Kosovo will have an economic growth of 3.9 percent.
