Economic Monitor Kosovo
Following strong, tourism-driven service exports and buffering effects of state subsidies and remittances on private consumption, Kosovo’s economic grew at a rate of 3.5% in 2022. Negative influences such as low public investment activities and a negative terms of trade shock driven by surging prices for imported commodities could thus be more than outbalanced. For 2023, economic growth is forecasted to be even higher with a predicted rate of 3.8%, however, driven by very different factors than in 2022 – especially a predicted surge in public consumption and investment after stalling in 2022 is predicted to play a key role to this end. In addition, inflation is expected to ease over the year with sharp decreases already observable in the first months of 2023.