Is Kosovo really as poor as it is reported?

Among ten European countries, Kosovo was ranked as the second poorest country, by the World Atlas platform, according to data from the International Monetary Fund.

Kosovo has not achieved the pace of development needed to improve the living standards of its citizens, which is why it continues to be considered "a small and poor economy," says Blendi Hasaj, executive director of the GAP Institute.

"We are somewhere around 30% of the European Union average, in terms of Gross Domestic Product per capita. This shows that we have not managed to have more accelerated economic development," Hasaj said on Radio Free Europe's 5 Questions podcast.

According to him, macroeconomic measurements do not always fully reflect the social reality in the country, as within the averages there are large economic inequalities.

"These data are macro and show an average, but within them there is a lot of inequality. It is enough for some people to have very high salaries, and the resulting average salary creates the impression that the situation is better than it really is," says Hasaj.

Speaking about the incumbent government's decision to allocate 100 euros to different categories, Hasaj criticizes the way this program is implemented, especially during election periods.

"These are ad hoc solutions. Structured and well-targeted programs are not being implemented. Moreover, it is problematic for public money to be distributed during elections," he says.

Hasaj says that inflation and the increase in prices of basic products have made life difficult for citizens, especially low-income families and private sector workers.

"Kosovo's economy continues to be characterized by low wages. Especially in the private sector, the prevailing wage is close to the minimum wage level," he says.

Hasaj also speaks about the public perception that, although statistics list Kosovo among the poorest countries in Europe, shops and cafes continue to be full.

He says part of this perception is related to the diaspora's large impact on the economy.

"Our economic model is very dependent on the diaspora. Remittances alone are over 1.35 billion euros, and most of them go to consumption," says Hasaj.

According to him, one of the biggest structural problems remains unemployment and the inactivation of women in the labor market.

"Kosovo has the highest rate of inactive women in Europe. This is a serious problem for the economy as well," he says, adding that investing in nurseries, home care for the elderly, and greater inclusion of women in the labor market would also directly impact poverty reduction.

Hasaj estimates that without structural reforms and sustainable investments in the economy, Kosovo will find it difficult to approach the living standards of EU countries.