Kosovo

map Kosovo
Economic growth in Kosovo remained solid in 2025, though structural vulnerabilities persist. The economy continues to be heavily dependent on imports and external financing, with gains in services exports, remittances, and FDI insufficient to offset the widening goods trade deficit. Growth is projected to be 3.4% in 2026 (slightly below earlier expectations), before rising to around 3.6% in 2027-2028, driven mainly by consumption and investment. The key challenges that remain are the deteriorating current account and the continued exposure to energy price volatility. The lifting of EU restrictive measures on Kosovo in January 2026 is a positive development, likely to support investment and confidence.
        FORECAST*
Main Economic Indicators202320242025202620272028
Population, 1000 persons160515941596...
GDP, real change in %4.14.63.63.43.63.6
GDP per capita (EUR at PPP)107501144012170...
Gross industrial production, real change in %9.05.04.0...
Unemployment rate - LFS, in %, average10.910.810.710.510.310.3
Average gross monthly wages, EUR570639690...
Consumer prices, % p.a.4.91.63.95.03.53.0
Fiscal balance in % of GDP-0.3-0.3-0.3-0.5-1.0-1.0
Public debt in % of GDP17.216.816.5...
Current account in % of GDP-7.2-8.4-8.2-9.1-8.8-8.4
FDI inflow, EUR m8407941095...
Gross external debt in % of GDP39.640.743.4...


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. 1/2026

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Maciej Grodzicki, Ioannis Gutzianas, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Biljana Jovanovikj, Niko Korpar, Dzmitry Kruk, Sebastian Leitner, Isilda Mara, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Marina Tverdostup
wiiw Monthly Report No. 1, January 2026
58 pages including 6 Tables and 15 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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