Back اقتصاد كوسوفو Arabic Kosovo iqtisadiyyatı Azerbaijani Косово Республикаһы иҡтисады Bashkir Эканоміка Косава Byelorussian Ekonomika Kosova Czech Οικονομία του Κοσσυφοπεδίου Greek Economía de Kosovo Spanish Économie du Kosovo French Gospodarstvo Kosova Croatian Կոսովոյի տնտեսություն Armenian

Economy of Kosovo

Economy of Kosovo
Kosovan capital and largest city Pristina
CurrencyEuro (EUR)
Calendar year
Trade organisations
CEFTA
Country group
Statistics
Population1,763,491 (2024)[2]
GDP
  • Increase $11.17 billion (nominal, 2024 est.)[3]
  • Increase $29.72 billion (PPP, 2024 est.)[3]
GDP rank
GDP growth
  • Increase 3.8% (2024 est.)[3]
GDP per capita
  • Increase $6,334 (nominal, 2024 est.)[3]
  • Increase $16,852 (PPP, 2024 est.)[3]
GDP per capita rank
GDP by sector
10.5% (2023)[5]
Population below poverty line
  • 17.6% (2015)[6]
  • 34% on less than $6.85/day (2017)[7]
29.0 low (2017)[8]
Steady 41 out of 100 points (2023, 83rd rank)
Labour force
Labour force by occupation
  • agriculture: 4.4%
  • industry: 17.4%
  • services: 78.2%
  • (2017)[4]
Unemployment10.7% (2023)[10]
Average gross salary
521€/$566 monthly (2022)[10]
446€/$485 monthly (2022)[10]
Increase 97.5% of GDP (2022)[11]
Increase 35% of GDP (2022)[12]
Gross savingsIncrease 24.7% of GDP (2022)[3]
Main industries
mineral mining, construction materials, base metals, leather, machinery, appliances, foodstuffs & beverages, textiles[4]
External
Exports$939 million (2023)[13]
Export goods
Mining & processed metal products, mineral products, food and beverages, products of plastic and rubber, agricultural products, leather products, textile, machinery and electrical components.
Main export partners
Imports$6.4 billion (2023)[13]
Import goods
Mineral products, food and beverages, machinery and electrical components, vehicles, chemical products, products of plastic and rubber, agricultural products, textile, live animals
Main import partners
FDI stock
  • Increase Inward: $6.8 billion (2023)[14]
  • Negative increase −$991 million (2022)[3]
  • Negative increase −1.86% of GDP (2022)[3]
Negative increase $3.7 billion (2022)[15]
Public finances
  • Negative increase $1.94 billion
  • Negative increase 20.13% of GDP (2022)[3]
Revenues$3,111 billion (2023)[16]
29.7% of GDP (2023)
Expenses$3,182 billion (2023)[16]
30.4% of GDP (2023)
$1.04 billion [15]
All values, unless otherwise stated, are in US dollars.


Kosovo is a developing country with an economy that functions on the principles of the free market, with a large private sector. Kosovo is an upper-middle income economy according to the World Bank,[18] and is a member of the World Bank and the International Monetary Fund. Its official currency is the euro.

Kosovo has seen consistent economic growth since the end of the Kosovo War in 1999, with a positive growth rate in every year except 2020, during the COVID-19 pandemic.[19] Its main trading partner is the European Union, with roughly 40% Kosovo's 2023 trade volume being done with the block, led by Germany, Italy and Greece. CEFTA countries make up another major part of Kosovo's trade partners, with North Macedonia, Albania, and Serbia being Kosovo's main regional trade partners. Other important trade partners include the United States, Turkey, Switzerland, and China.[13]

Despite its high endowment with lignite, Kosovo is currently undergoing an energy transition, attempting to phase-out its aging lignite power plants and to replace them with wind power plants such as Bajgora and Kitka wind farms, and with solar parks.[20] Kosovo's road network is relatively well developed, with the R6 and R7 motorways connecting the country to North Macedonia and Albania, respectively. The rail network is less developed, but investments are being made to modernize the train connections within the country.[21]

Kosovo is home to many tech companies and is a net exporter of services, with service exports totalling $2.6 billion (28% of GDP) in 2022.[22] The tourism sector is growing, with hiking and cultural tourism being main tourism activities. Peja, Prizren, and Pristina are some of the main tourist destinations, with Peja being close to the Accursed Mountains, a popular hiking destination.[23]

One of the main economic weaknesses of Kosovo remains the dispute of its declaration of independence by its neighbor Serbia, as well as Russia and China, which makes it difficult for Kosovo to join international organizations such as the WTO. Another challenge is migration out of the country, with an estimated 700,000 citizens having left the country between 1990 and 2023. But there are also potential strengths, including its very low level of government debt, future liabilities, and the strength of its banking system (despite remaining obstacles to using this for productive loans).[24] The emigrants are also an important part of the economy, with their visits and remitances playing an important role in building up capital for the future development of Kosovo's economy.

  1. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  2. ^ "Population, total - Kosovo". data.worldbank.org. World Bank. Retrieved 11 February 2020.
  3. ^ a b c d e f g h i "World Economic Outlook database: April 2024". IMF.org. International Monetary Fund. Retrieved 6 June 2024.
  4. ^ a b c CIA World Factbook https://www.cia.gov/the-world-factbook/countries/kosovo/
  5. ^ "Agjencia e Statistikave të Kosovës |". Archived from the original on 2023-04-06. Retrieved 2022-06-14.
  6. ^ "Poverty headcount ratio at national poverty lines (% of population) - Kosovo". data.worldbank.org. World Bank. Retrieved 11 February 2020.
  7. ^ "Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population) - Kosovo". data.worldbank.org. World Bank. Retrieved 11 February 2020.
  8. ^ "GINI index (World Bank estimate) - Kosovo". data.worldbank.org. World Bank. Retrieved 13 October 2019.
  9. ^ "HDI index (Global Data Lab estimate) - Kosovo". globaldatalab.org. Global Data Lab. Retrieved 14 March 2021.
  10. ^ a b c d {{Cite web|url=https://askapi.rks-gov.net/Custom/f7eea708-2a40-4011-a337-5ffdba846555.pdf%7Ctitle=Kosovo in numbers, 2023|access-date=2024-06-06
  11. ^ "World Bank Open Data".
  12. ^ "World Bank Open Data".
  13. ^ a b c {{Cite web|url=https://ask.rks-gov.net/Releases/Details/8158%7Ctitle=Statistics of Foreign Trade, 2023|access-date=2024-06-06
  14. ^ "Kosovo: Investing". Lloyds Bank. Retrieved June 6, 2024.
  15. ^ a b {{Cite web|url=https://bqk-kos.org/wp-content/uploads/2023/08/BQK_RV_BQK_2022.pdf%7Ctitle=Raporti vjetor 2022|access-date=2024-06-06
  16. ^ a b {{Cite web|url=https://ask.rks-gov.net/Releases/Details/8114%7Ctitle=Kosovo Government Accounts 2023|access-date=2024-06-06
  17. ^ "Fitch Assigns Kosovo 'BB-' IDR; Outlook Stable". Fitch Ratings.
  18. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  19. ^ https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=XK [bare URL]
  20. ^ Todorovic, Igor (2024-04-03). "Kosovo completes first solar power auction at EUR 48.88 per MWh". Balkan Green Energy News. Retrieved 2024-06-06.
  21. ^ "EU invests EUR 91 million in Kosovo railways to help improve connectivity with Europe". European Union Office in Kosovo. 2022-12-19. Retrieved 2024-06-06.
  22. ^ https://data.worldbank.org/indicator/BX.GSR.NFSV.CD?locations=XK [bare URL]
  23. ^ "Rritet për 90 për qind numri i turistëve në Kosovë" [The number of tourists in Kosovo grows by 90%]. Albinfo (in Albanian). 2024-03-10. Retrieved 2024-06-06.
  24. ^ Republic of Kosovo: 2011 Article IV Consultation and the Initiation of a Staff-Monitored Program—Staff Report; Public Information Notice on the Executive Board Discussion International Monetary Fund (Report no: 11/210 ). July 2011 Retrieved 11 December 2022

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