Arts, entertainment, and recreation industry suffer the most damage during the pandemic, the IT sector the least

The data of the Tax Administration of Kosovo show a correlation between the restrictive measures introduced to combat the spread of the SARS-CoV-2 virus and the economic performance of certain industries. The damage inflicted on different industries, however, is disproportionate, warns the Kosovo GAP Institute. They thus called on the Kosovo government to consider which industries have experienced the highest decline in turnover and distribute funds proportional to the damage suffered by these industries.

A study which evaluated the effects of the Economic Recovery program of the Kosovo government shows the data of the Tax Administration of Kosovo, according to which economic activities with the highest decline in turnover are the arts, entertainment and recreation industry (79%), real estate (44%), transport and storage (43%) and accommodation and food service (37%).

On the other hand, information and communication increased by 12%, water, waste management by 23% while other industries had relatively slight declines such as the processing industry 6%, agriculture 3% and trade 9%.

All these restrictions have led to significant declines in revenues for many industries. In the first nine months of 2020, over one billion euro less in revenues were declared in comparison to the same period of the previous year, read the findings of the GAP Institute report.

The economic effects between industries also vary in terms of employment – the report revealed. Economic activities that have faced fewer operating restrictions have reported fewer employment declines than other industries. The number of workers in industries such as arts, entertainment, and recreation decreased by 83%, transport and storage by 41%, real estate activities by 23%, and other service activities by 13%.

In the processing industries of water, waste management, mining, and extraction an increase in the number of employees during the pandemic period was visible.

In addition, due to restrictions on international travel, which caused a decrease in visits from the Kosovo diaspora, Kosovo’s economy is estimated to have lost from 205 to 291 million euros compared to 2019.

Although the Economic Recovery Program worth 365 million euro provides financial and legal aid to businesses affected by the pandemic, it does not specify how much it will support the most affected industries, which casts doubt on whether there will be aid that is commensurate with the damage caused to certain industries, this think tank warned.

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