US State Department Investment Climate Statement on Kosovo: Corruption, informality remain a problem

Gazeta Express

10/09/2020 11:19

Kosovo has potential to attract foreign direct investment, but that potential is constrained by failure to address several serious structural issues including: limited regional and global economic integration; political instability and interference in the economy; corruption; an unreliable energy supply; a large informal sector; difficulty establishing property rights, and tenuous rule of law, including a glaring lack of contract enforcement. 

These are the conclusions of the US State Department Investment Climate Statement report on  Kosovo. According to the report the country’s ability to sustain growth relies significantly on international financial support and remittances.

The report says that the COVID-19 pandemic is unlikely to lead to significant permanent changes in investment policies. The report highlights that the political environment in Kosovo has been characterized by short electoral cycles and prolonged periods of caretaker governments.  “While the environment in the country is growing increasingly politicized, the US Embassy is not aware of any damage to commercial projects or installations,” according to the report.

The US State Department report says that despite the challenges, Kosovo has attracted a number of significant investors including several international firms and U.S. franchises. Some investors have been attracted to Kosovo’s relatively young population, low labor costs, relative proximity to the EU market, and natural resources.  Kosovo does provide preferential access to the EU market through a Stabilization and Association Agreement (SAA). /GazetaExpress/