Kosovo’s economy has performed moderately well in the past few years despite a host of problems. Driven by private consumption and investment, which is supported by remittances, it is expected to grow further in the 2014-2016 period. Kosovo's economy grew by 3.2% in 2013 to 5.155 billion euro, according to data of the country's economic development ministry. Gross domestic product (GDP) per capita in 2013 was 2 773 euro. The country's economic growth in the next three years is expected to be the highest in the region, reaching more than 4.6%, according to the country's finance ministry.
The World Bank expects Kosovo's economy to grow by 3.5% in 2014 and 2015 and even further by 4.0% in 2016.
Consumer price index (CPI) reached 1.8% in 2013, according to data of the country's economic development ministry. Public Debt reached 9.0% of GDP in 2013 while foreign direct investments (FDI) stood at 258.5 million euro. The jobless rate in Kosovo fell to 30% in 2013 from 30.9% a year earlier, according to the country's statistics agency. The average number of unemployed was 144 829 in 2013. The average number of employed persons last year was 338 364, as 261 224 of them were men and 77 120 were women. Remittances, which account for an estimated 10-15% of GDP, amounted to 620.8 million euro in 2013, compared to 605.6 million in 2012.
Kosovo's 2014 budget bill projects revenues of 1.46 bilion euro. Expenditures are set at 1.59 billion euro.
Economic structure and major industries
Kosovo has the world's fifth biggest lignite reserves, estimated at 14 700 million tonnes. The country produced 8.1 million tonnes of coal in 2013, an increase by 0.6% from 2012.
As much as 53% of Kosovo's total area is arable land. Agriculture contributes 19% to the country's overall GDP and some 15% of the export value, according to data of Kosovo's foreign ministry.
Construction has emerged as one of the most important sectors in Kosovo's economy over the past years and is seen as hiding great potential, considering the country's housing and road infrastructure needs.
Firms in Kosovo identify informal sector practices, limited access to finance and corruption as the top three constraints of their business, a 2013 country profile survey by the World Bank and the International financial Corporation showed.