Economist Muhamet Mustafa from the Riinvest Institute has raised concerns that the structure of foreign direct investment in Kosovo is wrong and is not contributing to the real development of the economy.
According to him, most of the foreign capital is flowing into real estate, instead of being invested in sectors that create added value, employment and exports.
Mustafa said on the "Confrontation Podcast" that this trend is one of the reasons why Kosovo's economy continues to remain fragile and dependent on imports, Telegrafi reports.
He added that the lack of political stability and the perception of ongoing conflict directly affect investors' decision-making.
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"Foreign investments are mainly in real estate, not in productive sectors that create added value. Which foreign investor comes to invest in a country where Google sees permanent political conflict...", he added.
According to Mustafa, Kosovo needs clear industrial policies and incentives for manufacturing sectors, so that foreign investments are oriented towards activities that increase exports, improve the trade balance and create sustainable jobs. /Telegrafi/.
