Kosovo's Macroeconomic Analysis:
Nominal GDP of USD 9.4 billion in 2022.
Nominal GDP of USD 10.5 billion in 2023.
GDP per capita of USD 5,959 compared to the global average of USD 10,589.
GDP per capita of USD 5,307 compared to the global average of USD 10,589.
Average real GDP growth of 4% over the last decade.
Average real GDP growth of 4.3% over the last decade.
Sector Analysis
In 2021, services accounted for 65% of overall GDP, manufacturing 13%, other industrial activity 15%, and agriculture 7%. Looking at GDP by expenditure, private consumption accounted for 84% of GDP in 2021, government consumption 13%, fixed investment 36%, and net exports -33%.International trade
In 2021, manufactured products made up % of total merchandise exports, mineral fuels 2%, food 7%, ores and metals 32% and agricultural raw materials 15%, with other categories accounting for 44% of the total. In the same period, manufactured products made up % of total merchandise imports, mineral fuels 13%, food 17%, ores and metals 12% and agricultural raw materials 2%, with other goods accounting for 56% of the total. Total exports were worth USD 1 billion in 2022, while total imports were USD 5 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 4.1% in the decade to 2022. To read more about GDP growth in Kosovo, go to our dedicated page.
Fiscal policy
Kosovo's fiscal deficit averaged 2.4% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 27.4% in the decade to 2022. For more information on Kosovo's unemployment click here.
Inflation
Inflation averaged 2.3% in the decade to 2022. Go to our Kosovo inflation page for extra insight.
Monetary Policy
Kosovo's monetary policy rate ended 2022 at 6.29%, down from 12.24% a decade earlier. See our Kosovo monetary policy page for additional details.
Exchange Rate
From end-2012 to end-2022 the euro strengthened by 18.2% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Kosovo
Year-on-year economic growth eased in Q2 from Q1 on weaker expansions in both household consumption and exports plus a contraction in public spending. Shifting to Q3, available data suggests that the economy kicked into a higher gear. Remittance inflows rebounded in the quarter, while price pressures dropped to the lowest level since Q4 2020, boding well for private consumption. In addition, goods exports rose at a faster clip in Q3 relative to Q2. On the flip side, tourist arrivals swung into contraction. In other news, in late October, Parliament approved the 2025 budget, which is focused on social welfare and envisages a deficit of 2.0% of GDP. Meanwhile, in mid-November, Kosovo reached a staff-level agreement with the IMF to unlock around EUR 35 million. The Fund highlighted the country’s adequate reform implementation and robust economic growth.Kosovo Economic Forecasts
Projections out to 2034.42 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 8 expert analysts.
Want to get insight on the economic outlook for Kosovo in the coming years? FocusEconomics collects projections out to 2034 on 42 economic indicators for Kosovo from a panel of 8 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Kosovo economy. To download a sample report on the Kosovo's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.