WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Kosovo’s economic growth is likely to lose steam, owing to its high exposure to external shocks and certain domestic bottlenecks surrounding energy supplies. Consumption will spur growth, but at a slower pace. The restructuring of international trade will have negative spill-over effects, but there is also likely to be a silver lining in the shape of a surge in lignite exports. According to the baseline scenario – and on the assumption that the war in Ukraine will be over this year – inflation will climb to 7% and the growth rate will be 3.3%. In the medium term, inflationary pressure will slacken and growth will accelerate to 3.9%.