Economics professor at the University of Pristina, Nagip Skenderi, has stated that the United States (US) tax on Kosovo will have a negative effect on the Kosovar economy, saying that this will lead to an increase in the prices of basic products.
He said on Thursday on KTV's "60 Minutes" that the US tax is an economic war where "whoever is the strongest survives," adding that this will severely impact businesses and that consumers will pay the most.
"This will affect our economy, as we have the greatest partnership with the European Union. Products that are imported from the United States of America to the EU and then imported from Kosovo, this will affect the increase in all essential products for the consumer, and this will raise inflation in our country. It will naturally affect, therefore I appeal to institutions to maintain the preference for products and these tariffs that Kosovo has towards the US", said Professor Skenderi.
According to him, an expected economic recession must be avoided.
"In global competition, competition will lower the Kosovar economy and this will affect imports and exports. Those who cannot benefit from their economies, especially those we have with mattresses and drinks, will affect the growth of production within the country. This growth will of course also reduce existing jobs. It will affect the balance sheet of companies," he continued.
The professor stated that the Kosovo Government should also react to the increase in the price of electricity, saying that the ruling party had promised to reduce the price of electricity.
"The government must react decisively to the increase in electricity prices. This government had promised a reduction in electricity prices, not an increase. Inflation will increase because in the economy, energy is the promoter of the pull chain for the citizen's basket," added Skenderi.
Regarding the economic crisis in Kosovo, he used the example of a family having to reduce other expenses in order to pay the monthly electricity bill.
"The citizen should think about what is most essential to him. In the basic basket is also vacation. If he sees that he has to spend the vast majority of his salary on electricity and food, he should sacrifice the financial part he has for vacation. If he has planned 10 days, he should go on vacation for 6 or 7 days to enjoy the social pleasure of his family," he declared.