PRISTINA (Kosovo), April 6 (SeeNews) – Kosovo’s economy is expected to contract by 2% to 4% in 2020 due to coronavirus crisis from an annual growth of around 3.6% seen in the past decade, the country’s central bank governor, Fehmi Mehmeti, said.
The coronavirus crisis is expected to dent remittances, which equal 10% of Kosovo’s annual gross domestic product (GDP), as well as hit the country’s exports, Mehmeti said in a press release late on Friday.
"Despite the stable flow of remittances to Kosovo, they marked a decrease in the last global economic crisis, namely in 2009, 2010, 2011; therefore, it remains to be seen how the effects of the pandemic are to be manifested in economies where our diaspora is concentrated in order to have a more specific assessment of the remittances this year," the central bank governor said.
The inability to conduct economic activity in normal conditions as well as uncertainty about future developments are expected to lead to a decline of foreign direct investment, the governor said, adding that the relief package already approved by the government is expected to provide a necessary injection of funds into the economy.
In order to mitigate the impact of the coronavirus crisis on borrowers who are facing difficulties in generating income as a result of the pandemic, Kosovo's central bank, together with commercial lenders, has decided to allow a grace period for loan instalment payments from March 16 until April 30, and depending on the developments of the situation this period may be extended, Mehmeti said.
Last week, Kosovo’s government said it approved a 179.6 million euro ($194.0 million) package intended to support coronavirus-affected sectors of the economy, boost health expenditures and assist socially vulnerable people.
Kosovo confirmed five new cases of the coronavirus disease on Sunday, bringing the total number to 145, the national institute of public health said in a Facebook post.
Earlier, the government imposed a 13-hour curfew - from 5.00 pm to 6.00 am for all citizens in an effort to limit the spread of coronavirus.
($ = 0.92491 euro)