Kosovo’s economic growth speeds up to 16.3% y/y in 2Q21

Kosovo’s economic growth speeds up to 16.3% y/y in 2Q21
By bne IntelliNews September 29, 2021

Kosovo’s economy expanded by a real 16.28% y/y in the second quarter of 2021, following a revised 4.22% growth in the previous quarter, estimated data from the Kosovo's statistics agency indicated on September 28.

Kosovo's economy contracted in the second and third quarters of 2020, by revised 9.1% and 7.3%, respectively, due to the COVID-19 pandemic, and grew by 1.8% in the fourth quarter of last year.

Kosovo’s nominal GDP in current prices amounted to €1.96bn in the second quarter of 2021, up from €1.65bn a year earlier.

The biggest increase in the second quarter was registered in the wholesale and retail trade, accommodation and food service activities (31.9%), construction (27.3%), financial and insurance sector (16.2%) and scientific, professional and technical activities sector (10.2%).

The IT and communication sector expanded by 8%, followed by the extractive and manufacturing industry, electricity, gas, steam and air conditioning supply (6.1%), arts and entertainment (6.1%), agriculture and forestry (1.91%) and public administration sector (2.68%).

The economic activity that registered a decrease in the second quarter was real estate, which dropped by 1.1%.

In terms of GDP components by expenditure approach, exports of goods and services jumped by 127%, imports of goods and services by 53.74% gross capital formation increased 31.2% and final consumption expenditures rose by 14.2%.

Kosovo's Minister of Economy Artane Rizvanolli said in July that GDP growth this year could be even higher than the projection of 7.9% included in the pending budget revision, possibly reaching 10%.