Republic of Kosovo: 2013 Article IV Consultation
IMF Staff Country Reports, July 23, 2013
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- Republic of Kosovo: 2013 Article IV Consultation
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Bibliographic details
- Published: July 23, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484377987.002
Main findings: economic structure and external reliance
- Kosovo’s economy is excessively dependent on inflows from the diaspora.
- Diaspora inflows:
- Support incomes.
- Finance primarily consumption and investments in nontradables, such as real estate or services.
- Contribute little to the build-up of productive capacity.
- Goods exports are less than 10 percent of GDP and concentrated in sectors with a low-value added component, notably metals.
- Conclusion: A coherent strategy is needed to improve competitiveness, foster the development of a tradable sector, and lay the basis for self-sustained growth.
Policy implications and recommended strategic priorities
- Improve competitiveness to enable tradable-sector development.
- Foster development of a tradable sector to reduce excessive dependence on diaspora inflows.
- Promote investments that build productive capacity rather than primarily financing nontradables and consumption.
Subjects and keywords covered
- Subject: Balance of payments, Banking, Commercial banks, Consumer price indexes, External debt, Income, National accounts, Public debt, Remittances, Revenue administration
- Keywords: agreement, banking authority, CR, Global, government, government bank balance, governments of Kosovo, Income, ISCR, Kosovar authorities, liability positions vis-à-vis nonresident, Remittances
Source: IMF Staff Country Report — Republic of Kosovo: 2013 Article IV Consultation (Country Report No. 2013/222).