PRISTINA (Kosovo), November 13 (SeeNews) – Kosovo should attract private ownership and investment into state-owned enterprises that could give a boost to economy, the European Bank for Reconstruction and Development (EBRD) said on Tuesday.
“Little progress has been made in this area in recent years. Attracting private ownership and investment into state-owned enterprises could give the economy a much-needed boost,” the EBRD said its 2018-2019 transition report.
The lender also said a major reform push in the energy sector is needed. “Renewable energy investments and energy efficiency measures can help mitigate power shortfalls, while enhancing environmental sustainability and energy security.”
Kosovo also needs to speed up implementation of key cross-border infrastructure projects, the report noted, adding that finalisation and rehabilitation of the main transport links to pan-European corridors would boost trade and investment with neighbouring countries.
“Fiscal policy has remained moderate,” the report added, noting that the government has stuck to a prudent fiscal path, with a deficit at 1.2% of GDP in 2017.
According to the report, economic growth is likely to remain robust, at 4% in 2018, mainly driven by investment, as construction of key transport infrastructure progressed, although private and government consumption were also positive contributors to growth.