High import levels have placed Kosovo in an unfavorable economic position, creating an enormous trade deficit. This negative trade balance continues to harm the country, given Kosovo’s low export levels due to the lack of subsidies and unfavorable policies for local producers, KosovaPress reports.
Imports have increased significantly during the first five months of 2025, while export values fell compared to the same period last year.
In addition, Serbian goods have made a strong return to the Kosovo’s market this year, after several years of decline. Kosovo has more than doubled the import of products of Serbian origin in the first five months of this year compared to the corresponding period of 2025.
According to official data from Kosovo Customs, our country imported 91 million euros worth of goods from Serbia in the first five months of this year, or 49 million euros (116%) more than the same period last year, when imports stood at 42 million euros.
The change in security measures from full restriction to increased control has accelerated the flow of Serbian goods into Kosovo.
Meanwhile, trade relations between Kosovo and Germany are deepening more and more from year to year.
Germany, according to data from Kosovo Customs, is Kosovo’s top import partner for the January–May period, having overtaken Turkey this year by a small margin.
Kosovo Customs, in a response to KosovaPress, announced that the value of Kosovo’s exports of goods decreased by 12.7 million euros during the first five months of this year, compared to the same period last year. Meanwhile, import values increased by around 380 million euros from January to May 2025, compared to the corresponding period of 2024.
According to data from Kosovo Customs, in the period January–May 2025, the value of exports from Kosovo exceeded 356 million euros, while during the same period last year it was around 369 million euros. The difference between these figures exceeds 12 million euros.
On the other hand, the value of imports in the first five months of this year is over 2 billion and 760 million euros, while in January-May 2024, this figure was over 2 billion and 380 million euros.
The reasons behind the decline in exports and the increase in imports are assessed differently by economists.
One side emphasizes the impact of politics and the lack of cooperation with the private sector, while the other attributes these developments to structural weaknesses in the economy, including a weak production base, lack of innovation and gaps in the labor market.
The former president of the Kosovo Chamber of Commerce, Safet Gërxhaliu, emphasizes that the main reasons for the decline in exports and the increase in imports are closely related to political interference in the economy and the lack of cooperation with the private sector.
He says that the political agenda in Kosovo is suffocating economic development, while the absence of dialogue and public-private partnerships is seriously weakening the production sector.
“It is truly a bitter reality that has been created in Kosovo, where the political agenda is dominating. This political agenda is suffocating economic development, and the economy in Kosovo is experiencing various forms of failure — starting with the lack of dialogue and absence of a public-private partnership. There is a growing arrogance from the government toward the private sector… Unfortunately, this chronology or continuity of declining exports has been evident year after year, especially in the last three to four years. The fact that we now have a drop of 12 million euros in exports and a massive increase in imports clearly demonstrates the damaging effect on Kosovo’s private sector. There is no genuine dialogue, only attempts to paralyze the private sector. There is no motivation for it to be more creative or innovative,” emphasized Gërxhaliu.
https://kosovapress.com/keto-jane-produktet-me-te-eksportuara-dhe-importuara-ne-vitin-2024
On the other hand, Visar Vokrri, Program Director at the Riinvest Institute, says that the decline in exports and the high level of trade deficit in Kosovo are primarily linked to deep structural challenges in the country’s economy.
He emphasizes that one of the main reasons is Kosovo’s weak productive base, which, according to him, limits the country’s ability to export competitively.
“The reasons why we have this high trade deficit, the challenges are of a structural nature, starting from the production base in Kosovo. I also believe that unsatisfactory investments in innovation, research and development in the private sector, gaps in the labor market, and similar factors have contributed to our continued lack of competitiveness in export markets”, says Vokrri.
To reverse this trend, Vokrri emphasizes the need for dedicated policies that make the export sector more attractive, through clear support measures for exporters and by encouraging the private sector to focus on innovation.
“We need substantial investments in innovation, research, and development in order to increase our competitiveness in export markets… Policies that aim to make the export sector more attractive should start with specific measures for our exporters, encouraging the private sector to focus on innovation… There needs to be some kind of harmonization of support schemes. Because what we’ve seen so far is that many of these schemes, especially those focused on export promotion, have been relatively fragmented. Better coordination is needed, both with the donor community and the government itself, so that these schemes can truly address the needs of our exporters”, said Vokrri.
Meanwhile, according to Gërxhaliu, in order to stop the negative trend in exports, Kosovo needs political stability.
He also underlines the importance of improving the country’s image through active political and economic diplomacy, in order to lift or avoid economic sanctions.
“Kosovo needs political stability. Secondly, Kosovo must improve its image through active political and economic diplomacy in order to lift or avoid economic sanctions. Thirdly, it must become more active in investment promotion. We cannot be attractive to foreign investors if we don’t do more for the private sector and domestic producers,” emphasized Gërxhaliu.
Producers in Kosovo have continuously called on the country’s institutions to create favorable fiscal policies in order to increase exports.
In addition to the enormous increase in imports, the trade deficit during the months of January-May 2025 has deepened to 2.4 billion euros.
In addition, the top three countries from which Kosovo received imports during the months of January–May 2025 are Germany, with approximately 384 million euros, Turkey, with 381 million euros, followed by China, with over 329 million euros. After these, the next three countries supplying goods to Kosovo are Albania, Italy, and North Macedonia.
According to statistics from the Kosovo Customs provided to KosovaPress, the top six countries that received exports from our country during these months are North Macedonia with over 54 million euros, then Albania with over 52 million euros, followed by Germany and Switzerland. Meanwhile, in fifth place is Montenegro, which in the first five months of this year received goods from Kosovo worth approximately 21 million euros.
In 2024, Kosovo set a historical record in the value of imported goods.
During the past year, Kosovo exported goods worth only 889 million euros, while for the first time it imported 6.38 billion euros within a year.
In 2023, the value of exports was 819 million euros, while imports amounted to 5 billion 878 million euros.
In 2022, exports were 920 million euros, imports 5 billion 639 million euros; in 2021, exports were 755 million euros, and imports 4 billion 684 million euros.
In 2020, the value of exports was 474 million euros, while imports were 3 billion 296 million euros. /Z. Zeneli
https://kosovapress.com/admin/importi-nga-turqia-arrin-shifra-rekorde-thellohet-dificiti-tregtar/
