Weak results in the labor market, limited progress in infrastructure, single-source contracts, are some of the findings in the field of economy in the Progress Report for 2024 drawn up by the European Commission for Kosovo.
There was also criticism of our country for the large number of young people who do not attend higher education or training. According to this report, this number has increased and is the highest in the Western Balkans region.
In addition, the report emphasizes that poor labor market outcomes contribute to persistently high levels of emigration.
"The labor market continues to suffer from very low participation, high unemployment and large gender gaps. In 2023 the share of young people (15-24 years old) not in employment, education or training increased to 33.4%, from 33% in 2022, which is however the highest in the Western Balkans Region. Poor labor market outcomes contribute to persistently high levels of emigration. The results of the labor force survey continue to be published with great delays," the report states, KosovaPress reports.
In addition, the Progress Report also states that Kosovo has made limited progress in improving the road and railway infrastructure. The report states that there has been no progress on the Pristina - Merdare highway, as well as the rehabilitation works for Railway Line 10.
During the reporting period, there was no progress on the Pristina - Merdare highway. Rehabilitation works for Railway Line 10 continued at a slow pace. The signaling and telecommunication systems tender, which is a high priority, is still delayed, due to lack of funding. The transport system still faces several challenges in terms of safety, insufficient maintenance and weak administrative capacities of the regulatory institutions", the report states.
The country has also been reprimanded for the large number of single source contracts (using negotiated procurement procedures) especially in the Kosovo Energy Corporation.
"Kosovo needs to improve its planning and reduce the use of negotiated procurement procedures. To reduce the risks of misuse and fraud, it is important to ensure full transparency, strong rationale explaining the award decision and maintain an audit trail. In 2023, negotiated procedures without publication of the contract notice were 13.5 percent, with a majority of the contracts concluded by the Kosovo Energy Corporation," the report states.
The report mentions that the services sector continued to dominate economic activity in 2023, providing 46% of the gross domestic product. According to the report, EC recommendations from last year have been partially implemented and that Kosovo should improve the quality of public spending.