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Overview

COUNTRY CONTEXT

Kosovo’s economic growth in the past decade has outperformed its neighbors and has largely been inclusive. However, it has not been sufficient to provide enough formal jobs, particularly for women and youth, or to significantly reduce the country’s high rates of unemployment. Kosovo’s growth model relies heavily on remittances to fuel domestic consumption, but has recently shifted to more investment- and export-driven growth. 

To continue growth, Kosovo needs to unleash productivity gains and create more quality jobs. This will require addressing infrastructure bottlenecks, prioritizing human capital investment, and creating an environment more conducive to private sector development. Governance and the rule of law also must be strengthened.

Kosovo’s  young population needs to be equipped with the skills demanded by a modern economy, and the most vulnerable of its citizens protected by well-targeted and effective social programs. Gender gaps in access to economic opportunities are another key challenge. Further actions are also needed to promote environmental sustainability, including the fulfillment of the EU’s environmental acquis.

Kosovo’s economy experienced a strong recovery in 2021, but global inflationary pressures interrupted Kosovo’s boisterous recovery path. Real GDP growth is expected to decelerate to 3.1 percent in 2022, following a slowdown in investment and private consumption.

Last Updated: Oct 12, 2022

LENDING

Kosovo: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments

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Country Office Contacts

Pristina, Kosovo
Rruga Prishtinë - Fushë
Kosovë 10060 Pristina
+383-38-224-454-1100