The World Bank Manager for Kosovo and Northern Macedonia, Massimiliano Paolucci, said that Kosovo will have a slow economic growth during 2022.

Paolucci said that during this year the increase will be between 3 and 4 percent.

He said Kosovo should be wary of policies that may have high long-term fiscal costs such as the withdrawals discussed by the Kosovo Pension Savings Trust and their mandatory reimbursement by the government.

“In this precarious context, the risks for the short term are high. Growth in 2022 is expected to slow, but still remain positive, between 3 and 4 percent, with the assumption that prices will normalize during the second half of the year, driven by ongoing private investment and the acceleration of public investment, and consumer. However, a prolonged impact of new global uncertainties could further worsen the economic outlook, and Kosovo’s structural fragility, such as outdated power generation capacity, further increases uncertainty.

“Kosovo must be wary of policies that may have high long-term fiscal costs such as the withdrawals discussed by the Kosovo Pension Savings Trust and their mandatory reimbursement by the government, and must maintain the fiscal space to be respond to rapidly changing environment. In the medium term, there is an urgent need to address the constraints on higher productivity economic growth, as well as to invest in human capital so that Kosovo can take advantage of the young population to unlock the potential for growth. higher economic ”.