Zeka: Missing investments and political crisis endanger Kosovo’s economic growth

Zeka: Missing investments and political crisis endanger Kosovo’s economic growth

The Executive Director of the American Chamber of Commerce in Kosovo (ACCC), Arian Zeka, said that the lack of capital investments during 2025 has created difficulties for businesses and hindered the country’s economic growth, affecting the investment climate and the interest of foreign investors. 

He stressed that the political crisis and delays in forming a new government have also damaged Kosovo’s international image and could affect the country’s ability to benefit from international funding and support.

“What we have seen this year is probably starting from the lack of capital investments that have not been fully implemented as foreseen in the budget law for 2025, this is the most common complaint from member companies and other businesses in Kosovo. Capital investments are of extraordinary importance due to the multiplier factor in the economy that they generate and this has caused a large part of businesses to face difficulties,” he told Ekonomia Online.

He said that the impact of the political crisis is measurable and is related to the failure to achieve the predicted rate of economic growth.

“When we are talking about the impact of this political crisis, we should always focus on what is measurable. Measurable means not achieving the projected rate of economic growth for 2025. I do not believe that we will have what local institutions initially envisioned at the end of last year or at the beginning of this year. We are talking about the country’s inability to receive EU funds, those foreseen in the growth plan, but also other financial development instruments,” he said.

Zeka also emphasized that Kosovo’s image in the international arena is being damaged by negative news about the political situation and the delays in the constitution of institutions.

“What I see in the media headlines, and this is something that is not necessarily measured, cannot be quantified, is the negative impact that such a situation has on the image of the country. Kosovo already suffers from a bad image, and part of it is that it is not a finished story, meaning we have not yet achieved full membership in international organizations. But at the same time, we are suffering from more recognition from other countries around the world, and consequently, negative news such as headlines that Kosovo is breaking records in not constituting the Assembly, Kosovo is breaking records in not forming a new government after the February elections, are news that do not do justice to our image,” he said.

He also highlighted the lack of interest from foreign investors this year and the difficulties in concretizing investments.

 “There are very rare cases in which a foreign investor decides to make a move, there are few cases when foreign investors are deciding to expand their investments. What we have noticed as OEAK during this year is a significant reduction in interest from foreign investors in asking questions regarding the climate for doing business in Kosovo or the facilities that the country offers. It is a shame because Kosovo offers great competitive advantages that are not being properly promoted to foreign investors. We are not managing to concretize the specific interest of investors and put the same into economic development,” he said.

As for the statements of the acting Prime Minister, Albin Kurti, that the average growth this year will be 6 percent are unrealistic, while real forecasts show that growth will be lower than 4 percent. 

 “Such statements are unprecedented, the average of the last 3-4 years is used to show the economic growth that the country has had, we have had governments that have had a populist character in the past, but nevertheless the same ones referred to the economic growth that the country has achieved during a certain year. We must be realistic in this regard, this year we expect to have growth of less than 4 percent, you would be surprised if the statistics that will be published at the beginning of 2026 for the economic growth of 2025 would be different,” he said.

He warned that the current situation requires a new government that attaches importance to strategic relations with the United States and the European Union to protect Kosovo’s economic development and image in the international arena.

“Kosovo is one of the countries that has the United States of America as its most important strategic partner. The termination of the US strategic dialogue with Kosovo is of course not good news and negatively affects the image that the country enjoys internationally. I hope that soon after the new elections we will have a new government that attaches greater importance to relations with the US and the EU. Kosovo does not deserve to be under sanctions or face punitive measures from the EU or its allies, given that we have gained ground here 26 years since liberation and 17 years since the declaration of independence only with the help and support of our international allies. So the current approach, for which of course a large part of the blame is also placed on the Kosovo authorities, currently cannot and should not continue,” he said./EO/