KosovoKapitel
Kosovo is a developing country with an upper-middle-income economy that has made steady progress since independence. The country has gradually reduced its reliance on foreign aid and achieved stronger economic performance than many of its peers. Growth has been supported by rising consumption and investment, public infrastructure development, financial deepening, and a stable fiscal and low-inflation environment.
Although the economy still depends largely on the extraction and processing of raw materials such as gold, silver, copper, steel, and marble, other sectors are emerging and gaining momentum. Construction and textiles are well-established, while areas such as wood processing, ICT and digital services, green technologies, and the creative industries are opening new paths for sustainable and diversified economic growth, fueled by innovation and digitalisation.
Source: World Bank
Kennzahlen
- Fläche
- 10,887 sq km
- Bevölkerung
- 1,594,353 (2024)
- Regierungsform
- Parliamentary republic
- Sprachen
- Albanian (official) 94.5%, Bosnian 1.7%, Serbian (official) 1.6%, Turkish 1.1%, other 0.9% (includes Romani), unspecified 0.1%
- BIP
- $11.2 billion (2024)
- Wachstumsrate
- 4.6% (2024)
- HDI
- NA
- Hauptstadt
- Pristina
Makroökonomische Indikatoren
After growing by 4.6% in 2024, Kosovo’s economy slowed to 3.8% in H1 2025 as household consumption eased and external demand weakened. Private consumption rose by 4.9%, still the main driver of growth though at a slower pace compared to the previous year. Real wages increased by 10.3% in 2024, supported by a higher minimum wage, but formal employment grew only modestly, averaging 1.4% in the H1 2025.
Investment also strengthened, with gross capital formation up 8.8%, fueling activity in construction and manufacturing, while financial services expanded alongside rising demand. Strong domestic demand also drove import growth, which surged 13.7% in the first half of the year, outpacing a 11.2% rise in exports and widening the current account deficit. Remittances and net FDI provided only limited support, reaching 4.2% and 7.9% growth, respectively, by August. Consumer inflation reached 5.1% in October 2025, bringing the January-October average to 3.6%. Core inflation also increased steadily over the period, averaging 1.8% by October 2025. Fiscal and financial sector risks remain limited, providing a stable backdrop for the economy despite slowing growth.
Source: World Bank
IMF Statistics:
Luxemburg und das Land
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 08.12.2017 (Memorial 2019, A no.495, p.9)
- Effective as of 01.01.2020 (Memorial 2019, A no.495, p.9)
Air Services agreement
None
Weitere Informationen
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Kosovo
Embassy of the Grand Duchy of Luxembourg in Pristina
Chargé d'affaires e.p.: Mr Eric DIETZ
Ramiz Sadiku Complex
Ukshin Hoti Street C3/2/b no. 132, 6th Floor
10 000 Pristina
Kosovo
Tél./Fax: (+383) 38 22 67 87
E-mail: pristina.amb@mae.etat.lu
Site web: www.pristina.mae.lu
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Kosovo
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office – Country Risk for Kosovo
Other useful links