Kosovo in Figures
"Difficult Starting Conditions - Enormous Potential"
"In Kosovo, 17.6% of the population currently lives below the poverty line."
Unequal Starting Point
Kosovo's economy is based on small family farms on the one hand and on private enterprises in the trade and construction sectors on the other, but these are often severely undercapitalized. Gross value added per capita was $2,000,508 at the low point of economic development and $2,424 in 2012. Growth rates are high by regional standards, but fluctuate widely. Currently, the country imports three times as much as it exports. In 2012, exports of $1.2 billion were offset by imports of $3.6 billion.
The economy is thus extraordinarily dependent on financial inflows from outside. According to Kosovo's Ministry of Finance, remittances from guest workers abroad are higher than the value generated in Kosovo. As aid flows decline and access to the EU labor market is also made more difficult for Kosovars, this already unhealthy structure poses significant risks for the country, which is in the process of recovery.
Unique Opportunities
Kosovo's legislation is aware of this, however, and a number of EU regulations have been adopted in recent years. In the financial market in particular, Kosovo meets a large part of the ECB's requirements in order to be attractive to the much-needed investments from abroad. In addition, Kosovo has always introduced the German mark first and the euro later. Thus, there would be little problem in attracting investors. But this is precisely what is not happening. As a result, financial transfers from abroad have declined considerably since 2003.
We therefore see considerable market potential in Kosovo. The World Bank and the international community are also making efforts in this direction. The World Bank's experts see economic opportunities above all in the energy and mining sectors. The World Bank also sees agriculture and tourism as potential growth sectors. In recent years in particular, the World Bank's rating of the start-up and business climate has improved.
"Die Wirtschaft stagniert, da der Erwerb notwendiger Ressourcen ist nicht mehr gegeben ist. Das Land birgt jedoch ein enormes Potenzial: Der Kosovo nähert sich seit Jahren freiwillig immer stärker an Regulierungen der europäischen Union an."
- Florian Schweitzer, Sustainability Committee
