Kosovo dependent on imports, Kosovo’s trade deficit reaches half a billion in just one month

Kosovo dependent on imports, Kosovo’s trade deficit reaches half a billion in just one month

Kosovo is continuing to deepen its dependence on imports, driving the trade deficit to a worryingly high level.

According to the latest data published by the Kosovo Agency of Statistics (KAS), during June 2025 alone, the trade deficit reached 498,3 million euros, an increase of 17,1% compared to the same period last year.

This negative balance occurs despite the modest growth in exports, which are not even close to covering the momentum of imports.

According to ASK, Kosovo’s exports of goods in June 2025 were worth 80,4 million euros, while imports amounted to 578,7 million euros. This represents an increase of 9,5% for exports and a much higher increase of 16,0% for imports, compared to June 2024.

The report shows that exports cover only 13,9% of imports, an indicator that continues to speak of a fragile structure of domestic production and a deepening inequality in trade relations.

According to the data, exports are dominated by basic metals and plastic products, while the group of imports is led by mineral products, machinery and means of transport, an indication that the country’s economy continues to be dependent on finished goods and external inputs for basic functioning.

Geographically, Kosovo exports mostly to CEFTA countries (45,9% of exports), led by Albania and North Macedonia. Meanwhile, imports come mainly from the European Union (43,1%) and other countries around the world such as China and Turkey, which together account for almost half of total imports.

Exports and imports on the rise

During June 2025, the value of exports of goods from Kosovo reached 80,4 million euros, representing an increase of 9,5% compared to June of last year. On the other hand, imports increased by 16%, reaching a value of 578,7 million euros.

This greater increase in imports compared to exports is a key factor that has influenced the expansion of the trade deficit.

What does Kosovo export?

The structure of exports shows the dominance of several main groups of goods. Base metals and articles thereof constitute 21,4% of total exports. They are followed by:

Prepared foods – 13,0%

Plastics and rubber – 12,5%

Miscellaneous manufactured items – 9,8%

Mineral products – 6,7%

Drinks and tobacco, and more.

Imports – dependence on foreign goods
On the other hand, the structure of imports is dominated by:

Mineral products – 14,0%

Electrical/mechanical machinery and equipment – 13,2%

Food, beverages and tobacco – 13,0%

Means of transport – 12,3%

Base metals – 8,6%

These sectors show the high dependence of the Kosovo market on technology, energy, and food products from abroad.

Exports and imports by trading partners
European union
Kosovo’s exports to EU countries reached 27,6 million euros, or 34,4% of total exports, with an increase of 10,7%. The main partners in this category were:

Germany – 9,4%

Italy – 3,3%

Netherlands – 3,2%

On the other hand, imports from the EU were 249,6 million euros, representing 43,1% of total imports, with an increase of 9,2%. The countries with the largest share in imports were:

Germany – 14,2%

Poland – 5,2%

Italy – 4,7%

CEFTA countries

Exports with CEFTA countries reached 36,9 million euros (45,9% of exports), an increase of 12,2%. The main export partners in this group were:

Albania – 16,9%

North Macedonia – 15,5%

Montenegro – 6,3%

Serbia – 5,7%

Meanwhile, imports from CEFTA were 82,7 million euros (14,3% of the total), with a significant increase of 28,1%. The largest imports came from:

North Macedonia – 5,1%

Albania – 4,8%

Serbia – 3,4%

Other countries of the world
Exports from Kosovo to countries outside the EU and CEFTA were 15,9 million euros, or 19,8% of the total. Important partners in this category were:

Switzerland – 11,3%

Turkey – 2,9%

While imports from other countries reached 246,4 million euros, or 42,6% of the total, dominated by:

China – 13,1%

Turkey – 12,6%

Furthermore, a high increase in imports from Serbia (3,4%) is observed, despite political rhetoric that often encourages calls for a boycott of Serbian goods. This shows that the lack of alternatives in the domestic market and the inability to build sustainable production chains keep the Kosovar economy dependent on imports, regardless of the origin of the goods.

Economic experts have warned for years that the lack of a serious strategy for developing domestic production and supporting domestic industries will plunge Kosovo into an endless cycle of trade deficit. According to them, even when exports increase, they are usually in unstable sectors that are dependent on international prices (such as ferrous metals or scrap metal), while imports are focused on essential consumer goods and basic technologies that Kosovo cannot produce.

The latest foreign trade data highlight a well-known phenomenon that Kosovo produces little and imports a lot. Despite the increase in exports, the gap between what the country sells and what it buys from abroad is widening, increasing pressure on the trade balance and on the economy as a whole. In the absence of a sustainable strategy to support domestic producers, this disparity is likely to deepen even further in the coming months.