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 4.0%

EBRD forecast for Kosovo real GDP Growth in 2019 4.0%

Robust growth has continued into 2018 with overall output rising 4.2 per cent year-on-year in the first half of the year. Growth was mainly investment driven, as construction of some of the key transport infrastructure progressed, although private and government consumption were also positive contributors to growth. Inflation averaged 0.6 per cent in the first eight months of 2018, while fiscal policy has remained moderate, as the government has stuck to a prudent fiscal path. Public debt also remains exceptionally low by regional standards at just 17 per cent of GDP by the end of 2017 (excluding debt related to the Yugoslav era). Further growth is likely in the short term.

Kosovo in the EBRD’s 2018-19 Transition Report