financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
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Number 3<br />
Financial Stability Report<br />
Moreover, new registered enterprises are mainly micro-enterprises 3 (99.01 percent of total<br />
new enterprises), while the remainder consists of small (0.84 percent), medium (0.11<br />
percent), and large enterprises (0.04 percent).<br />
4.1.2. Prices<br />
Inflationary pressures which reached their peak in March 2011 began to soften in the<br />
coming months, reaching the lowest level in March 2012. Consumer Price Index (CPI) for<br />
the first half of 2012 recorded an annual average growth rate of 1.5 percent, which is a<br />
relatively low compared with the<br />
Figura 15. Annual rate of Consumer, Import, and<br />
same period of the previous year, Producter Price<br />
when inflation recorded an annual<br />
15.0<br />
average growth rate of 9.6 percent<br />
12.0<br />
(Figure 15). The softening of<br />
9.0<br />
inflationary pressures in 2012 is<br />
6.0<br />
mainly addressed to weakening<br />
3.0<br />
demand and the overall price<br />
0.0<br />
developments in global level.<br />
-3.0<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun<br />
Prices of products such as bread<br />
2011 2012<br />
and cereals, vegetables, and oils<br />
and fats had the main influence in<br />
IPI PPI CPI<br />
softening the inflation. Meanwhile, Source: ASK (2012); CBK calculations<br />
oil prices continued to have a<br />
positive impact on the growth of the general price level in the country.<br />
Price fluctuations in Kosovo are largely as a result of the price changes in external markets,<br />
which are reflected through the Import Price Index (IPI). In the first half of 2012, the<br />
annual average growth rate of IPI was 6.0 percent. High sensitivity of the price level in<br />
Kosovo by price movements in<br />
global markets is also shown in<br />
Figure 15, where it can be seen<br />
that the trend of the CPI and<br />
Producer Price Index (PPI) have<br />
followed a very similar trend to<br />
IPI. Similar trend of import prices<br />
and producer prices shows a fairly<br />
heavy reliance of domestic<br />
production on the import of raw<br />
materials from abroad. Despite of<br />
this, in the first half of 2012, the<br />
CPI has been significantly lower<br />
than the IPI (a difference of 4.8pp).<br />
Figure 16. Real Effective Exchange Rate<br />
115<br />
110<br />
105<br />
100<br />
95<br />
90<br />
Jan<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Source: CBK (2012)<br />
2010 2011 2012<br />
REER Total REER CEFTA REER EU<br />
This difference is attributed to the PPI, which in the first half of 2012 recorded an average<br />
deflation rate of 0.1 percent. The decline of producer prices is manifested mainly in the<br />
extraction of metallic minerals, metal production, furniture production, etc.<br />
3 Classification of enterprises by size was based on the number of workers, such as: micro (1-9 employees), small (10-49 employees), medium (50-249<br />
employees) and large enterprises (250 employees).<br />
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