In Kosovo we focus on:
Supporting competitive development of the private sector: The EBRD will provide financing to Kosovo corporates and small and medium-sized enterprises (SMEs) to support investment in competitiveness gains. Improving access to finance for SMEs will remain a priority, and the Bank will continue to work with local partner banks to this end. The Bank will continue deploying targeted frameworks, such as the Women in Business programme and the Western Balkans Sustainable Energy Financing Facility, and will also provide business advisory services.
Enhancing energy security and sustainability: The Bank will seek to apply its Green Economy Transition approach to all investments in the country. Energy efficiency and renewable energy can help mitigate power shortfalls, which are currently endemic, while enhancing environmental sustainability. The Bank will also consider supporting investments in power generation capacity where these are consistent with its Energy Sector Strategy.
Supporting connectivity and regional integration: Infrastructure development is needed to improve Kosovo’s regional integration and attract foreign direct investment, as well as to harmonise with EU standards. To that end, Kosovo needs to develop road links to pan-European corridors and modernise its railway network. The EBRD will aim to provide long-term finance and advisory to help build and rehabilitate key transport links, as well as support Kosovo in bringing its transport sector into compliance with European standards.
The EBRD’s latest Kosovo strategy was adopted on 4 October 2016.
EBRD forecast for Kosovo real GDP Growth in 2017 3.7%
EBRD forecast for Kosovo real GDP Growth in 2018 3.5%
The economy in Kosovo has continued to perform well in 2017, accelerating from the rate of growth it experienced in 2016. In H1 2017 the economy grew by 4.2 per cent year-on-year, primarily driven by rising investment but with positive contributions also from net exports and private consumption. Fiscal discipline has remained strong within the IMF programme, which expired in August 2017.
As a result of the economy’s strong performance, we are increasing our growth forecast slightly to 3.7 per cent in 2017, followed by 3.5 per cent in 2018. However, downside risks include possible delays to key infrastructure projects, which are crucial for the long-term sustainability of the economy.