E C O N O M Y 

“Healthy citizens are the greatest asset any country can have”, said Winston Churchill. This quote of the former British Prime Minister seems to serve as an inspiration not only to the local leadership, but also to younger generations in the youngest country, with the youngest population in Europe, Kosovo.

Despite difficulties faced in the rule of law, and the relatively high unemployment, especially among young people, Kosovo possesses all economic resources and capacities to be a developed state of the highest European and international standards. Out of many economic indicators, two may be the determinants giving the youngest country with the youngest population in Europe a rapid development and a prosperous future for all its citizens.


First: the majority of serious global trends analyses predict that by 2030 most of the countries in the region, Europe, Russia and Japan, except Kosovo, will have a relatively old population, which can serve as a great advantage and opportunity to the country of Kosovo and its citizens.


Another factor that may have an impact in this regard is the empowerment of the individual/ his/her education through communication means and their impact on rapid development, especially in developing countries. In Kosovo, it is estimated that over 70 percent of households  have Internet access, which is seen as a high advantage.


The above analysis is simply an overview of Kosovo from the world trend development perspective, and the opportunities therein, without including indicators, development or the potentials provided within. Internally, the economy of Kosovo has marked a viable and consistent growth.


Since 2008, when the country declared its independence, it is estimated that Kosovo has marked an annual economic growth of about 3.4 percent. According to the Vienna Institute for International Economic Studies, Kosovo is the second country with the largest economic growth in Europe during 2017, while the World Bank projections indicate an increase of almost 5 percent over the next two years, 2017 and 2018 respectively.


Kosovo’s other advantage compared to other countries in the region is the low level of public debt, which is estimated at about 18 percent of the GDP. Kosovo's overall GDP is estimated to be at over $ 18 billion with an annual growth of about $ 1 billion, while GDP per capita (PPP) according to statistics for 2016 is estimated at about $ 10,000.


Having an economy that relies on international markets, a proper tax system, multiple natural resources, rapid and easy business registration, a modern law on Strategic Investment, a young and well-qualified population, favourable climate conditions with over 250 sunny days during the year, new infrastructure and the fastest and most convenient access to the Adriatic Sea and the regional markets of CEFTA, European Union, USA, Japan and Norway and other advantages, Kosovo is considered to be an attractive and favourable environment for foreign investors and among the most competitive states in the region.

For companies seeking to invest in the country with the lowest food basket and the lowest average wage in the region, with easy access to EU, CEFTA, US, Japan and Norway markets, Kosovo certainly represents an extremely attractive opportunity. A foreign investor can register his business in only 2 days, free of charge and with zero charter capital (for LLC).

The improved credibility of doing business climate in Kosovo is also proven by important international institutions.


The World Bank Doing Business Report 2018 confirms Kosovo's substantial progress in improving the business climate and the same report places Kosovo at 40th place in the world out of 190 countries. In addition, Kosovo is the only European country in the list of 10 reforming countries within a one-year evaluation period.


Currently, VAT is at the level of 8 percent for basic products (services and food basket), and 18 percent for other products. Corporate Income Tax is 10 percent, and on dividend is zero percent, while personal income tax is progressive, reaching to a maximum of 10 percent.


According to statistics of the Central Bank of Kosovo, the value of Foreign Direct Investments from 2007 to date has amounted to over EUR 3 billion. Kosovo’s main trading partners are the countries of the region, as well as the European Union. In 2014 approximately 60 percent of imports are estimated to come from European Union states.


The official currency used in Kosovo is the EURO, which seems to have helped in avoiding inflation.

It is estimated that from 2003 to 2015 more than 5 thousand international businesses have been registered in Kosovo, whereas their investments are focused on trade, finance, energy, infrastructure, catering, tourism and construction.


Despite being a small country, Kosovo's underground resources are estimated to be worth hundreds of billions of dollars. Studies have shown that Kosovo is extremely rich in lignite and is estimated to have over 12 billion tonnes of reserves, ranking it fifth in the world.  There are also large reserves of lead, zinc, silver, gold, nickel, chrome, bauxite, aluminium, magnesium and other mineral resources.


The previously adopted fiscal policies, and the new measures undertaken by the current Government to exempt all producers who import on their own, or through contractors, from excise tax and customs duty, and to postpone VAT on raw material used in the production process, are expected to further strengthen the private sector, and Kosovo’s economy in general. The adoption of another extremely important Law on Strategic Investments is seen as a great opportunity for bringing FDIs to the country.

Economy Statistics



International Business



Annual Economic Growth

12mil ton


Underground resources


Information and Communications Technology (ICT)


Information and Communications Technology (ICT) is often used as an extended synonym or as an umbrella term for information technology (IT), but is a more specific term (e.g. broader in scope) that emphasizes the role of unified communications and integration of telecommunications (telephone lines and wireless signals), computers, and necessary software for entrepreneurship, middleware, storage (warehousing), and audio-visual systems that allow users to access, store, broadcast, and manipulate information.

Food processing and packaging

Packaging and labelling are also used by vendors to encourage potential buyers to buy the product. The marketing communications are designed to reflect the message of the brand and its identity.

Mines and metalworking


Trepça is an ancient mine of lead, zinc, silver, crystals and minerals in Kosovo, namely in the municipality of Mitrovica.


Electricity in Kosovo relies mainly on power produced by power plants (97%)[1], whereby this sector is considered as one of the sectors with the greatest potential for development. The problems inherited after the war in Kosovo and the transition period have had a major impact on the sector. The regulation of activities in the energy sector in Kosovo falls under the responsibility of the Energy Regulatory Office (ERO). The Ministry of Economic Development (MED), responsible for energy-related matters, plays an important role in the energy sector. MED prepares legislation, drafts strategies and projects.

Textile and leather processing


Although in the past, the textile sector was one of the priority sectors, immediately after the mine and minerals sector, however, after the 1990s this sector experienced a drastic drop and lost the markets it had before, meaning that this sector is not competing with companies in the region. A large part of the companies in this sector are formed by employees of former state-owned companies, namely at the level of micro and small enterprises, therefore their orientation is fulfilling the requirements of local consumers.  2017/12/7caf0988-5bc9-4f9b-a7f4-bce9d3733f33.pdf

Wood processing

Wood processing is considered as one of the most strategic sectors with great potential for growth. The total volume of public and private forest land is estimated to be about 53 million m³. Statistical data show that 75% of wood processing companies produce final products; 18% produce intermediate (semi-final) products, and 10% produce raw material. Most wood processing companies have had positive indicators in recent years (positive growth in turnover, value-added production, increase in the number of employees, and increase in exports).



Kosovo has tourism sites that can be used by its population for excursions, sports, recreation, vacations, culture, and education.


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