Republic of Kosovo: 2024 Article IV Consultation and Third Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2024 Issue 364

Publication date: December 2024

ISBN: 9798400297250

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Topics covered in this book

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Exports and Imports , Finance , Inflation , Money and Monetary Policy , Public Finance , Business and Financial , Anti-money laundering and combating the financing of terrorism (AML/CFT) , Commercial banks , Financial sector stability , Budget planning and preparation , Credit , Inflation

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Summary

The SBA has served as insurance against adverse shocks while guiding reforms to strengthen fiscal and financial governance and foster growth. The RSF has supported climate reforms to increase generation of renewable energy, boost energy efficiency, enhance regional cooperation, and strengthen crisis preparedness and transition risk monitoring. With strong domestic consumption, growth has accelerated in 2024, while inflation has declined. The fiscal outturn has been positive. However, strong demand for imports and lower remittances have contributed to a deterioration of the external balance. Key risks include higher commodity prices, weaker activity in Europe, and tensions in northern Kosovo. Parliamentary elections will take place in February 2025.