IMF Staff Country Reports

Republic of Kosovo: Staff Report for the 2015 Article IV Consultation

Publication Date:

May 21, 2015

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This 2015 Article IV Consultation highlights that growth in Kosovo has proven relatively resilient and stronger than in its western Balkan neighbors, averaging slightly more than 3 percent over the last five years. Steady remittances from the diaspora living in advanced European economies continue to be a key driver of growth, supporting as they have private consumption and investment. Medium-term growth prospects of some 3.5 percent per year, while reasonable, are not strong enough to steadily lift incomes towards regional standards, or to create enough jobs in a country with very high unemployment. Kosovo’s banks remain liquid, well capitalized, and profitable. Nonperforming loans ratios are slightly elevated at 8.4 percent, but are stable and fully provisioned.

Series:

Country Report No. 2015/131

Subject:

Banking Fiscal policy Fiscal rules Income Labor National accounts Public debt Public sector wages Wages