Kosovo posts strong economic growth of 14.53% y/y in 3Q21

Kosovo posts strong economic growth of 14.53% y/y in 3Q21
By bne IntelliNews December 28, 2021

Kosovo’s economy expanded by a real 14.53% y/y in the third quarter of 2021, following a revised 16.77% growth in the previous quarter, estimated data from Kosovo's statistics agency indicated.

The International Monetary Fund (IMF) said that recovered mobility due to the increased vaccination rate, policy actions and the support from the diaspora are behind the strong economic recovery for Kosovo in 2021. The IMF projected Kosovo's economy to grow by a real 7-8% in 2021 following a 5.3% contraction in 2020. The authorities expect even higher economic growth of about 10%. Kosovo posted GDP growth of 4.12% in the first quarter of 2021.

Kosovo’s nominal GDP in current prices amounted to €2.2bn in the third quarter of 2021, up from €1.83bn a year earlier.

The biggest increase in the third quarter was registered in the wholesale and retail trade, accommodation and food service activities (35.3%), scientific, professional and technical activities sector (10.9%), manufacturing (10.85%), and the arts, entertainment and recreation sector (7.43%).

The financial and insurance sector expanded by a real 5.83% while the IT and communication sector rose by 4.25%.

Only the construction sector fell in the third quarter, by 4.12%, reversing a strong 32.78% growth in the previous quarter.

In terms of GDP components by expenditure approach, exports of goods and services jumped by 147.42%, imports of goods and services by 44.39% gross capital formation ticked up 0.14% and final consumption expenditures rose by 1.84%.