Kosovo's trade deficit widened 16.1% year on year to €578.3mn in June, the Kosovo Agency of Statistics said on July 23.

Exports rose 26.9% to €102mn while imports climbed 17.6% to €680.3mn, leaving export coverage of imports at 15%. The persistent gap is structural for an economy of 1.6mn people with a narrow industrial base, heavily dependent on remittances and imported fuel, machinery and vehicles to meet domestic demand.

Base metals and related products accounted for the largest share of exports at 27.4%, followed by prepared foods, beverages and tobacco at 12.7%, plastics, rubber and related products at 10.6%, miscellaneous manufactured articles at 8.7% and mineral products at 7.1%.

Mineral products led imports with 15.2% of the total, ahead of machinery, mechanical and electrical equipment at 13%, means of transport at 12%, prepared foods, beverages and tobacco at 11.9% and base metals at 9.8%.

Exports to the European Union reached €32.5mn, or 31.9% of the total, up 17.7% year on year. Germany was the main EU destination at 10.1% of overall exports, followed by the Netherlands at 3.8% and Italy at 3.1%.

Imports from the bloc totalled €304.9mn, or 44.8% of the total, up 22.2%. Germany accounted for 13.3% of all imports, ahead of Italy at 8.6% and Poland at 4.3%.

Exports to Central European Free Trade Agreement markets rose 19.3% to €44mn, or 43.1% of the total. North Macedonia took the largest share at 16.7% of overall exports, followed by Albania at 14.3%, Montenegro at 5.7% and Serbia at 4%.

Imports from CEFTA countries also rose 19.3%, reaching €98.7mn or 14.5% of the total. North Macedonia was the largest source at 5.4%, followed by Albania at 4.8% and Serbia at 3%.

Exports to other markets came to €25.5mn, or 25% of the total, with Switzerland and Turkey the main destinations. Imports from those markets reached €276.7mn, or 40.7% of the total, led by China at 15.1% and Turkey at 11.6%.