Economic Profile

The business environment in the Republic of Kosovo is becoming one of the most competitive in the region. An excellent tax system, abundance of natural resources, quick and easy business registration methods, a transparent law on foreign investments, are just a few advantages making this country an attractive and friendly environment for foreign investors.

The Republic of Kosovo is distinguished as the country with the greatest opportunities for investment in the Balkans, hence a strong reason appealing at international investors as a primary place for their investments.

GDP growth 2006 –2012 (in mil EUR)

Viti GDP at constant prices In %
2006 3,105.10 3.4%
2007 3,379.40 8.3%
2008 3,710.70 7.2%
2009 4,077.00 3.5%
2010 4,136.50 3.2%
2011 4,486.00 4.5%
2012 5,021.00 ** 2.9%**

Source: Statistical Agency of Kosovo - Central Bank of Kosovo**

Real GDP Growth in Western Balkans

Source: International Monetary Fund (IMF)

Source: International Monetary Fund (IMF)

 

Western Balkans Growth 2007 - 2012

Kosovo           Albania     Macedonia   Montenegro     Romania         Serbia         Bulgaria

Source: World Economic Outlook (WEO)

Growth and Living Standards in Western Balkans

FDI growth 2006 –2012 (in mil EUR)

Year 2006 2007 2008 2009 2010 2011 2012 Total
FDI 294.8 440.7 366.5 287.4 365.8 393.9 291.1 2,378.1

Source: Central Bank of Kosovo

FDI 2007 –2012 by Country (in mil EUR)

Country 2007 2008 2009 2010 2011 2012 Total
Germany 48.1 44 75.2 91.5 66.6 49.5 374.95
Great Britain 116.2 36.6 6.2 38.9 80.1 14.3 292.24
Slovenia 56.2 44.3 50.8 34.0 16.2 9.3 210.76
Switzerland 9.7 32.1 22.7 35.1 30.9 43.8 174.34
Turkey 5.4 23.8 14.5 4.9 34.7 65.6 148.86
Austria 35.4 51.3 15.5 21.1 19.6 0.4 143.26
Albania 3.4 21.9 23.3 20.3 11.2 4.7 84.79
Netherlands 41.2 22.5 15.1 14.5 14.2 -26.0 81.53
United States 8.8 4.8 11.8 12.6 14.3 10.8 63.14
Others 74.5 70.7 29.9 71.5 88.0 35.2 369.7
Total 440.7 366.5 287.4 365.8 393.9 229.1 2,083.50

Graphical Representation of main investorsSource: Central Bank of Kosovo

Source: Central Bank of Kosovo

FDI 2007 - 2012 by Sectors (as % of total FDI)

Description/Year 2007 2008 2009 2010 2011 2012
Financial Services 23.1% 34.9% 25.5% 19.5% 8.9% 10.4%
Production 9.0% 6.0% 17.1% 19.8% 12.8% 12.1%
Real Estate 7.0% 16.8% 14.9% 13.4% 16.3% 31.7%
Transport & Telecommunication 29.3% 13.8% 7.4% 4.0% 6.2% 7.9%
Electricity 0.6% 4.5% 2.9% 0.1% 0.0% 1.3%
Mining 9.4% 4.7% 2.4% 2.7% 0.8% 4.6%
Construction 1.2% 3.7% 12.0% 24.9% 34.3% 20.8%
Processing Industry 8.0% 8.5% 2.4% 6.9% 0.5% 0.4%
Agriculture 1.8% 2.3% 4.4% 0.6% 0.1% 0.1%
Trade Services, Cleaning, Collection 2.9% 2.7% 5.5% 3.3% 2.1% 3.6%
Advising Opearations & Research 1.0% 0.6% 0.9% 2.3% 2.0% 1.6%
Sanitarian Activity 2.9% 0.6% 0.8% 0.7% 0.0% 0.3%
Other 3.8% 0.9% 3.8% 1.9% 16.0% 5.1%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

 

Source: Central Bank of Kosovo

FDI by Sector - Pie chart representation

Source: Central Bank of Kosovo