The World Bank has estimated that most of the economies of the six countries of the Western Balkans experienced moderate economic growth this year, but warns that the forecast for the future remains uncertain. According to the latest report, entitled "Maintaining the Growth Pace", Kosovo has had economic growth of 3.8 percent in 2024.
According to the report, in 2025, Kosovo is expected to grow by 3.9 percent, while in 2026 by 4 percent.
Economic growth for this year was mainly driven by consumption and diaspora investments in construction.
Kosovo continues to have the largest number of unemployed in the region. According to the World Bank, only 37 percent of the working population is employed.
The main challenges for Kosovo, according to the report, remain reforms in the energy sector, water supply and improvement of human capital, as well as connections with foreign markets.
Among the risks, the World Bank emphasizes the pressure to increase budget expenditures on the eve of the elections, but also the ongoing geopolitical uncertainty, included in the special political context of Kosovo.
In the World Bank report, together with Kosovo, Serbia also had the highest economic growth in the Western Balkans with 3.8 percent.
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After them comes Montenegro with 3.4, Albania with 3.3, Bosnia with 2.8 and North Macedonia with 1.8.
Overall economic growth in the region is projected to reach 3.7 percent during 2025, according to the World Bank.
The World Bank evaluated it EU "Growth Plan" for the Western Balkans as a positive step that could support the region's economic growth, but at the same time warns that there are ongoing risks, such as "slow global growth, price increases, political uncertainty and damage from extreme weather." The report calls for labor market reforms, in particular for increasing the inclusion of women in it.
