Kosovo's economy may go into recession as a result of the high inflation that has hit the country and consequently reduced economic activity.

This is what the professor of economics at the University of Pristina, Mejdi Bektashi, and the president of the Chamber of Commerce of Kosovo, Lulzim Rafuna, told Radio Free Europe.

A recession is described as a contraction of the business cycle and as a result there is a general decline in economic activity.

The real economic growth of Kosovo, according to Bektashi, is no more than 2 to 3 percent, and this growth, he adds, "is not enough to escape the recession."

"The problem is that now inflation, unstabilized by wage indexation, whether in the public or private sector, is causing lower demand that could lead to a recession," says Bektashi.

According to data from the European Bank for Reconstruction and Development (EBRD), Kosovo will record an economic growth of 2022 percent in 3,5, and the same amount is predicted for this year.

Inflation, 6,3 percent

In Kosovo, in April, according to the data of the Statistics Agency, inflation was 6,3 percent higher compared to the same period last year.

An increase in prices is observed for food products, fuels, transport, etc.

When can a recession occur?

Bektashi says that in the current period when the arrival of the Kosovar diaspora is expected, there is not expected to be a recession, because there is an increase in the amount of money in the economy.

But after the departure of the diaspora at the end of the summer months, it can be presented.

"Not investing in roads, preserving the state budget by keeping money frozen, not investing, can cause a lack of money that will be expressed in the construction and trade sectors," he says.

The construction and trade sectors are two of the sectors with the greatest economic activity in Kosovo.

According to data from the Central Bank of Kosovo, remittances reached a value of over 1,2 billion euros last year alone.