IMF Staff Country Reports

This paper presents Republic of Kosovo’s Fourth reviews under the Stand-By Arrangement and the Arrangement under the Resilience and Sustainability Facility. Kosovo’s economic performance continues to be strong. In 2024, growth was 4.4 percent, driven by household consumption, supported by strong private credit and rising wages. Inflation decelerated sharply, reaching an average of 1.6 percent in 2024 down from 4.9 percent in 2022. The objectives of both programs have been successfully achieved. The economy has maintained healthy growth, inflation has notably decelerated, fiscal buffers have been rebuilt, and reforms have accelerated. All indicative targets for end-December 2024 and for end-March 2025 were also met. Two structural benchmarks for this review—implementation of a cash forecasting function within the Treasury and the development of a roadmap for adopting the Supervisory Review and Evaluation Process to assess bank risk profiles—were implemented. Building on the progress made under the programs, the authorities should continue with prudent fiscal policies, strengthen the fiscal framework, and advance structural reforms in the fiscal and financial sectors.