Kosovo

map Kosovo
Growth remained resilient in the first half of 2026, but inflation accelerated more than expected, reflecting higher imported fuel and energy costs, but also strong wage growth. The fiscal stance became more expansionary, driven predominantly by higher current spending. FDI continued to expand, but remained highly concentrated and increasingly tilted towards real estate. The economy is expected to continue to grow at close to 4% in 2026 and at 3.7% in 2027-2028, as domestic demand remains strong. Rising real wages and remittances will continue to support consumption, while investment and exports will maintain their moderate contributions to overall growth.
        FORECAST*
Main Economic Indicators202320242025202620272028
Population, 1000 persons160515941591...
GDP, real change in %4.14.63.84.03.83.7
GDP per capita (EUR at PPP)107601142012190...
Gross industrial production, real change in %9.029.07.6...
Unemployment rate - LFS, in %, average10.910.810.910.510.310.3
Average gross monthly wages, EUR570639713...
Consumer prices, % p.a.4.91.63.96.04.53.2
Fiscal balance in % of GDP-0.3-0.3-0.8-0.5-1.0-1.0
Public debt in % of GDP17.216.816.5...
Current account in % of GDP-6.3-7.1-8.1-7.7-8.2-7.8
FDI inflow, EUR m8407941053...
Gross external debt in % of GDP39.640.743.3...


Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.

publication_icon

Monthly Report No. 7-8/2026

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Ioannis Gutzianas, Gabor Hunya, Branimir Jovanović, Biljana Jovanovikj, Niko Korpar, Dzmitry Kruk, Isilda Mara, Michał Możdżeń, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Marina Tverdostup
wiiw Monthly Report No. 7-8, July-August 2026
52 pages including 5 Tables

Details

publication_icon

Executive summary

Olga Pindyuk
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. I-VII
Details


top