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Malaj warns/ If inflation increases more than wages, the country will go into crisis

2023-03-31 17:12:00, Ekonomi CNA

Malaj warns/ If inflation increases more than wages, the country will go into

Economy expert Arben Malaj has spoken about Prime Minister Edi Rama's statements about salary increases and bonuses for pensioners, explaining the real effect of this increase.

According to Malaj, the problem lies in the economic aspect, saying that if wages are increased, inflation will also increase.

Malaj says that if inflation increases more than the increase in wages, then the country will go into crisis.

"Increasing salaries and pensions if done outside of economic logic due to electoral fever, its increase may increase the cost of business and the increase in the cost of business decreases production and on the other hand production decreases and on the other hand the demand for increased wages increases. And this creates an inflationary spiral. Wages increase to a certain extent, inflation increases more than wages and the country goes into crisis", said Malaj./CNA

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