Kosovo overview

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 2018 3.9%

EBRD forecast for Kosovo real GDP Growth in 2019 4.0%

Relatively strong economic growth continued in 2018 for the fourth year in a row. After 3.7 per cent growth in 2017, GDP grew by 3.9 per cent in 2018, driven by investment and consumption. Higher domestic demand contributed to an increase in imports and widening of the current account deficit to over 8 per cent of GDP. Inflation remained subdued for a year as a whole (at around 1 per cent), but it has gone up since the second half of 2018, reaching 3.3 per cent in March 2019.

Kosovo in the EBRD’s 2018-19 Transition Report