Kosovo’s economy continues to remain dependent on imported goods, while the difference between purchases from abroad and sales in foreign markets is deepening from year to year. Accepting the situation, the acting minister Kusari Lila has expressed that the situation represents additional pressure for the institutions to work harder in promoting local production and increasing its competitiveness.
“But what is very important for us is the focus of increasing the substitution of imported goods in general, while the focus of reducing the trade deficit, which I agree is high, and we are given a special pressure and push by the fact that we have to work harder to promote both local production and the substitution of imported goods. While the first and fastest step with which we are doing the analyzes that can replace imported products, is about with all contracts in public procurement. It would be excessive if, through contracts in public procurement, preference was given to other imported products or services. But this should be done in the entire spectrum of assistance for local producers, starting from the increase in quality, competitiveness in prices and other measures,” she said.
“In general, in the total of general imports of the Republic of Kosovo, Serbia, if I’m not mistaken, is not even in the top 10. Compared to the same period last year, there was a slight increase, however, it has to do with some specifics with construction material and problems that have appeared here in Kosovo, with which we are dealing intensively in relation to some industries. But, in general, the consumption of general goods from Serbia is not increasing and this is positive news”, she said.
Customs data show that during the first five months of this year, goods worth 2.9 billion euros were imported, while exports reached only 419 million euros. This means that the country spent about 2.5 billion euros more on imports than it earned from exports. Economic experts link this situation to the lack of structural reforms and the increase in consumption in the market. According to them, the increase in salaries, pensions, social assistance and remittances from the diaspora has increased consumption, while local production remains a little competitive in front of imported goods. Germany, China and Turkey remain the main import partners in Kosovo.
