PRISTINA (Kosovo), May 13 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said on Tuesday it expects Kosovo’s economy to grow by 3.9% in 2025, lowering its previous estimate made in February by 0.1 percentage points.
The adjustment reflects expected indirect negative effects on remittances from higher tariffs, the EBRD said in its May 2025 Regional Economic Prospects report.
Timelier implementation of public investment could help Kosovo’s economic growth but having a caretaker government makes it challenging to carry out important reforms and invest in major projects, the EBRD said.
The EBRD projects Kosovo’s economic output to grow by 3.9% in 2026. Kosovo’s economy expanded by 4.4% in 2024.
The EBRD revised its 2025 growth forecast for the Western Balkans, which includes Kosovo, to 3.2% from 3.6%, citing the potential impact of U.S. tariffs, particularly on export-reliant economies like Bosnia and Herzegovina, North Macedonia, and Serbia. Political instability in Serbia and spillovers from slower growth in advanced European economies are weighing on the region’s outlook, the EBRD said.