PRISTINA (Kosovo), February 2 (SeeNews) – Resolution of residential, agricultural, and commercial property claims remains a serious and contentious issue that hampers economic freedom in Kosovo, according to 2018 Index of Economic Freedom report published by U.S.-based think-tank The Heritage Foundation.
“Kosovo is ranked 27th among 44 countries in the Europe region, and its overall score is below the regional average but above the world average,” the Heritage Foundation said in its 2018 Index of Economic Freedom report.
Kosovo’s economic freedom score is 66.6, making its economy the 56th freest in the 2018 index. Its overall score has decreased by 1.3 points compared to the 2017 edition of the annual index, with a steep decline in scores for the property rights and labor freedom indicators overwhelming improvements in fiscal health and business freedom.
The index measures economic freedom in 12 areas - from property rights to entrepreneurship - in 186 countries worldwide through 12 quantitative and qualitative factors, grouped into four broad categories: Rule of law, Government size, Regulatory efficiency and Open markets.
“Despite managing to record positive growth rates, the economy is characterized by extremely limited regional or global economic integration, political instability, corruption, unreliable energy supply, a large informal economy estimated at 35% of GDP, and a tenuous rule of law, including a lack of contract enforcement,” the report reads.
“The level of financial intermediation in the evolving financial system is increasing. The banking sector, dominated by foreign banks, remains stable. Nonperforming loans are a serious problem.”