World Bank: Kosovo experiencing a much faster recovery than expected

The most recent World Bank report on the Western Balkans states that Kosovo is experiencing a much faster recovery than previously expected.

According to the report, Kosovo’s economy is recovering rapidly from the COVID-19 pandemic, with output in 2021 expected to exceed 2019 levels by year-end while the economic activity in 2021 is expected to expand by 7.1 percent on the back of a stronger-than-expected rebound in diaspora visits, restored consumer confidence, and higher consumer lending. “Public revenue is experiencing an unprecedented rebound due to higher economic activity, but also due to higher inflation and tax compliance measures. As a result, and against sluggish public investment execution, the fiscal deficit is expected to decrease in 2021,” the report states.

It underlined that the management of the fourth wave of the pandemic, including the acceleration of the vaccination process remains a priority in the near term while in the medium term, Kosovo needs to transition to a more productivity-oriented growth model.