Kosovo

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The economy is expected to grow by 3.9% in 2025 – a moderate deceleration from the 4.5% expansion of 2024. Inflation picked up during Q2 and Q3 2025, and exposure to import price shocks remains high, given the country’s heavy dependence on imports. The trade imbalance will lead to a persistent current account deficit. Domestic demand, public investment and services exports remain the primary growth engines, but downside risks from the political deadlock, inflationary risks and trade headwinds remain elevated.
        FORECAST*
Main Economic Indicators202220232024202520262027
Population, 1000 persons176816051594...
GDP, real change in %4.34.14.63.93.84.1
GDP per capita (EUR at PPP)87401075011440...
Gross industrial production, real change in %12.39.05.0...
Unemployment rate - LFS, in %, average12.610.910.810.710.610.5
Average gross monthly wages, EUR521570639...
Consumer prices, % p.a.11.64.91.63.52.52.0
Fiscal balance in % of GDP-0.5-0.3-0.3-0.5-0.5-0.5
Public debt in % of GDP19.717.216.8...
Current account in % of GDP-9.2-7.2-8.4-9.3-8.9-8.4
FDI inflow, EUR m732840794...
Gross external debt in % of GDP38.639.640.7...


Basic data are continuously updated.

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

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Monthly Report No. 7-8/2025

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Maciej Grodzicki, Ioannis Gutzianas, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Niko Korpar, Dzmitry Kruk, Sebastian Leitner, Isilda Mara, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Maryna Tverdostup
wiiw Monthly Report No. 7-8, July-August 2025
38 pages including 5 Tables and 3 Figures

Details

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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


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