The Central Bank of Kosovo (CBK) expects economic growth of 3.9% in 2024.
According to the CBK announcement, the expectations are that the country’s economy will grow faster during 2024, supported by the increase in real disposable income, thanks to the decrease in inflation and the increase in financing sources.
“CBK forecasts for 2024 suggest that Kosovo’s economy will be supported by the increase in real disposable income, thanks to the decrease in inflation, and the increase in financing sources. The CBK forecasts economic growth of 3.9 percent for 2024, which is expected to be supported by the increase in consumption, investments and export of goods and services, against the negative impact of the import of goods and services on GDP”, reads the report of the CBK, for Quarterly assessment of the Economy.
The CBK announces that according to the preliminary estimates of the KAS, the economy of Kosovo has recorded an increase of 5.6 percent in Q1 2024.
“The acceleration of economic growth compared to the same period last year is mainly related to the dynamics of domestic demand, while net exports negatively affected economic activity as a result of the increase in domestic demand that was accompanied by an increase in imports, the visa liberalization that affected the increase in the import of travel services, price dynamics in international markets and weakened demand in the Eurozone”, reads the report.
Economic growth in Q1 2024 is mainly supported by consumption and investments, which contributed with 9.1 and 1.0 percentage points respectively. On the other hand, net exports had a negative impact on real GDP growth.
“In Q1 2024, consumption increased by 8.9 percent, a much higher increase compared to the same quarter last year. Investments increased by 3.1 percent, mainly due to the increase in public investments and lending. As for foreign trade, net exports deepened the trade deficit by 12.7 percent. The increase in the trade deficit was a consequence of the increase in the import of goods and services by 9.1 percent (the import of goods increased by 6.9 percent, while the import of services increased by 30.8 percent), as well as the decrease in the export of goods by 1.9 percent, whereas the export of services increased by 14.0 percent”, reads the report.
According to the CBK, inflation continued to follow a slowing trend in Q1 2024, with an average rate of 2.1 percent.
