Investor Presentaiton
Opportunities to Foreign Investment in Kosovo
Euro (€), Kosovo does not run any monetary policy risk either. Prices are expected to
remain stable in the future.
Table 1.1: Main macroeconomic indicators
GDP /1
Inflation /1
Description
Unemployment/2
Remittances (€ Million) /1
2005
2006
2007
2008
2009
2010
Est.
3.9%
-1.4%
4.0% 4.0%
0.6% 4.4%
5.4%
9.4% -2.4%
4.0%
4.6%
3.5%
41.4%
44.9% 43.6%
47.5% 45.4% 45%
418.0
467.1
515.6 535.4 505.6 511.6
Source: 1 Central Bank of the Republic of Kosovo (CBK), Monthly Statistics Bulletin May 2011
/2 Statistical Office of Kosovo (SOK)
Kosovo's economy in 2010 recorded a real growth of Domestic Gross Product (GDP) of
4.0%. Differently from 2009, where the growth was mainly driven by the increase of
public expenditures and decrease of prices, the growth in 2010 was driven by the increase
of consumption and investments in private sector. The real GDP growth for 2008 was
estimated at 5.4 percent. The economic growth in 2008 was driven by the increase in
consumption and investments, largely financed by bank loans, remittances, public
expenditures and foreign assistance.
An average increase of prices of 3.5% was recorded during 2010, which was mainly
driven by the increase of prices of food products. The decline of the international
presence can be considered as a partial explanation for the decline in overall levels of
prices in Kosovo. In particular, despite the upward pressure of oil prices, average annual
inflation in 2005 fell by -1.4%. In this case this is a deflation. The annual average
inflation rate in 2008 stood at 9.3 percent. The inflation rate was generated by the
increase of prices globally. This signifies the sensitivity of prices in Kosovo against the
external sector, what results from the high reliance of the economy on imports.
Unlike year 2008, when inflation rate reached at 9.3 percent, year 2009 was characterized
by an average inflation rate of 2.4 percent, i.e. deflation -2.4.
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