PRISTINA (Kosovo), May 9 (SeeNews) – Kosovo’s poverty rate, measured at the lower middle income poverty line of $3.2 (2.7 euro) per day based on 2011 purchasing power parity, will edge down to 2.55% in 2018, from 2.60% in 2017, the World Bank has said.
The slight decline in poverty will be driven by stronger economic growth, the World Bank said in its semi-annual report Macro Poverty Outlook, Spring 2018 released earlier this week.
“High unemployment and inactivity rates remain the key impediments to sustainable poverty reduction,” the Bank added.
Economic growth is projected at 4.8% in 2018-2020, propelled by higher capital spending, the bank said, adding that growth in public investment is expected to be driven by several infrastructure projects under preparation.
“Kosovo’s outlook is positive, but the risks are tilted to the downside,” the report noted, adding that lower than projected absorption of public investment, lower base metal prices and slower growth in Europe and other trading partners pose risks to the outlook.
“Perceived fragility of the government, with only 61 out of 120 votes in the parliament, can slow down the implementation of public projects through the investment clause.”
According to the report, reform priorities should include shifting sources of growth towards tradable sectors and increasing productivity to address high unemployment, low participation rates, and poverty.
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