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Overview

COUNTRY CONTEXT

Kosovo2020
Population, million
1.8
GDP, current US$ billion7.5
GDP per capita, current US$
4,145
Life Expectancy at Birth, years 72.2

Kosovo is a parliamentary republic. It declared independence on February 17, 2008 and is recognized as an independent country by more than 100 United Nations members and by 23 out of 28 members of the European Union (EU). Kosovo is a potential candidate for EU membership and signed a Stabilization Association Agreement with the EU in October 2015 that has been in force since April 2016. Last parliamentary elections were held on February 14, 2021, and the current government was elected on March 22, 2021. 

Although Kosovo’s economic growth in the past decade has outperformed its neighbors and has largely been inclusive, it has not been sufficient to provide enough formal jobs, particularly for women and youth, or to significantly reduce the 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 to grow, 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, supported by a rebound in domestic demand and record export growth.

Last Updated: Apr 20, 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