Kosovo overview

Share this page:

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.

Kosovo's policy response to the coronavirus crisis

The EBRD is monitoring Kosovo's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

EBRD forecast for Kosovo real GDP Growth in 2021 7.7%

EBRD forecast for Kosovo real GDP Growth in 2022 4.5%

The Kosovo economy is recovering mainly on the back of a supportive external sector. GDP increased by 16.3 per cent year-on-year in AprilJune 2021, posting growth for the third consecutive quarter. Household consumption is upheld by a continuously growing inflow of remittances, which expanded by 23 per cent yearon-year in the first eight months of 2021, and credit growth. Exports of services, which were more than four times exports of goods prepandemic, doubled in the first seven months compared with the same period in 2020, surpassing the respective 2019 level by 11 per cent.
 
The strongest jump so far was observed in May-June when travel-related services increased more than fourfold compared with the 2020 level and by 34 per cent compared with the prepandemic year. Goods exports grew strongly as well, nearly doubling in nominal terms versus the same period in 2019. This comes largely on the back of a successful recent expansion of the furniture sector, which is expected to continue supporting expansion of exports and their geographical diversification.
 
The economy is forecast to grow by 7.7 per cent in 2021 and by 4.5 in 2022. The main risks to the outlook relate to the pandemic and potential weaknesses in the external sector.
 

Kosovo in the EBRD’s 2021-22 Transition Report

 

Share this page: