|GDP, current US$ billion||7.1|
|GDP per capita, current US$||3,877|
|Life Expectancy at Birth, years||71|
Kosovo is a parliamentary republic. It declared independence on February 17, 2008 and is recognized as an independent country by 114 out of 193 United Nations members and by 23 out of 28 European Union (EU) members. Kosovo is a potential candidate for EU membership, a process that was accelerated with the signing of the Stabilization Association Agreement in October 2015, in force since April 2016. The current Government was voted in on September 9, 2017.
Although Kosovo’s economic growth has outperformed its neighbors and been largely inclusive, it has not been sufficient to significantly reduce the high rates of unemployment; provide formal jobs, particularly for women and youth; or reverse the trend of large-scale outmigration. The growth model relies heavily on remittances to fuel domestic consumption but has recently shifted toward more investment- and export-driven growth.
Kosovo’s current growth and poverty reduction strategy needs to address the infrastructure bottlenecks, particularly in energy; create an environment more conducive to private sector development; equip the young population with the skills demanded by employers; provide financial protection to citizens to achieve better health outcomes; and build up governance and rule of law to fully reap the benefits of EU integration, unleash productivity gains, and create quality jobs that foster inclusion. Gender gaps in access to economic opportunities remain one of the main challenges for Kosovo. Further actions are also needed to promote environmental sustainability, including the fulfillment of the EU’s environmental acquis.
Last Updated: Oct 11, 2018