Newsletter Issue 1 | September – October 2021

Strong economic rebound in 2021

The economy of Kosovo was hit hard by COVID-19 in 2020. In particular tourism receipts, which accounted for 18% of GDP in 2019, dropped by more than half in 2020 on the back of travel restrictions. A strong fiscal response and higher remittances were able to reduce the effect of the shock. Nevertheless, GDP declined by 5.3% in 2020. For 2021, a strong rebound is expected with GDP growing by over 6%. The recovery is broadly based, but a very strong summer season for tourism was a decisive factor.