Kosovo Country Economic Memorandum - Gearing up for a More Productive Future - November 2021

Jul 19, 2026

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Kosovo Country Economic Memorandum (November 2021) examines the drivers behind low productivity and growth volatility, linking macroeconomic trends with firm-level performance, farm outcomes, and the functioning of factor markets. The report analyzes constraints from education quality, regulatory barriers, and competition policy, while assessing competitiveness channels through exports, foreign direct investment, and investment dynamics. It synthesizes cross-cutting evidence to outline priorities for improving productivity across firms and farms and supporting sustainable, inclusive economic progress.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages116

Reading Time4 h 52 min

AccessFree to download

Executive Summary

Overview

Macroeconomic Overview

Raising Firm Productivity

Raising Farm Productivity

Improving Education Quality

Removing Regulatory Barriers to Competition

Boosting Exports

Boosting Foreign Direct Investment

Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized WORLD BANK GROUP Gearing up for a More Productive Future November 2021 Kosovo Country Economic Memorandum Kosovo Country Economic Memorandum Gearing up for a More Productive Future Table of Contents Acknowledgments 7 Acronyms 8 Executive Summary 10 Overview 12 Macroeconomic Overview 26 Raising Firm Productivity 44 Raising Farm Productivity 58 Improving Education Quality 70 Removing Regulatory Barriers to Competition 80 Boosting Exports 90 Boosting Foreign Direct Investment 106 Fig 1. Growth Volatility, 2008–19, Percent p.28 Fig 2. Consumer Price Inflation Volatility, 2010–19, Percent p.29 Fig 3. Domestic Bank Credit to the Private Sector, 2010 and 2019, Percent of GDP p.29 Fig 4. Financial Soundness Indicators, 2011–20, Percent p.30 Fig 5. Real GDP Growth, 2010–19, Percent p.30 Fig 6. GDP per Capita, 2009–19, US$, Percent p.31 Fig 7. Actual and Potential Growth, Percent, 2010–19 p.31 Fig 8. GDP per Capita Projections, US$, 2019–59 p.32 Fig 9. Kosovo’s Economy, Shares of Value-added, 2010 and 2019, Percent p.32 Fig 10. Kosovo’s Economy, Employment Shares, Average 2012–19, Percent p.33 Fig 11. Drivers of Demand-side Growth, 2010–19, Percent p.34 Fig 12. Drivers of Supply-side Growth, 2010–19, Percent p.34 Fig 13. Investment as a Share of GDP, 2008–19, Percent p.35 Fig 14. Share of Public and Private investment, 2010–19, Percent p.35 Fig 15. Decomposition of GDP into its Drivers, 2008–19, Percent p.36 Fig 16. Diaspora-Related Flows, 2009–19, Percent p.36 Fig 17. Unemployment, Kosovo and Comparator Countries, 2009–18, Percent p.37 Fig 18. Unemployment, 2012 and 2019, Percent p.37 Fig 19. Net FDI, US $Million, 2004–19, Percent of GDP p.38 Fig 20. Net FDI by Sector, ¤Million, 2008–19, Percent of GDP p.38 Fig 21. Human Capital Index, 2020 p.39 Fig 22. Worldwide Governance indicators, 2019, Index = –2.5- 2.5 p.39 Fig 23. GDP per Capita Projections Based on Structural Changes, US$, 2020–60 p.41 Fig 24. TFPR, Sales, and Value Added per Worker, 2013–17, Percent p.46 Fig 25. TFPR Growth, 2014–17, Percent p.47 Fig 26. Active Firms by Size, Average, 2010–18, Percent of Total p.47 Fig 27. Turnover Comparisons by Firm Size Relative to EU Averages, 2018; Index EU=100 p.48 Fig 28. Employees in Active Firms, 2010–18, Thousands p.49 Fig 29. Firm Age and Employment Growth By Number of Employees at Birth (Size Class) p.49 Fig 30. Kosovo Firm Density Relative to Western Balkan and EU Peers, 2018 p.50 Fig 31. Survival Rates by Firm Age, Percent of Total Firms p.50 Fig 32. Net Firm Entry and Exit Rates p.51 Fig 33. Exporters and Importers, Percent p.52 Fig 34. Gender of Firm Decisionmakers, Percent of Total Firms p.53 Fig 35. Loans to the Private Sector by Term, Average 2015–18, Percent of Total p.54 Fig 36. Productivity and Access to Credit p.55 Fig 37. Agricultural VA, Compared to Structural and Aspirational Peers,a 2008–19, Percent p.60 Fig 38. Structure of Gross Value Added in Kosovo and Comparators, 2010 and 2019, Percent p.60 Fig 39. Employment by Sector, Average Shares, 2012–19, Percent p.61 Fig 40. Agricultural Labor Productivity, Kosovo and Peers, Constant 2010 US$ p.61 Fig 41. TE and SE Scores in Agriculture, 2017 p.62 Fig 42. MeanTE and SE Scores by Farm Size, Kosovo, 2017 p.63 Fig 43. GDP and Commercial Loan Shares by Sector, 2018 p.63 Fig 44. Density Distribution of TE and SE, Kosovo, 2017 p.64 Fig 45. TFP Growth by Farm Size Kosovo, 2015–17, Percent p.64 Fig 46. Agricultural Value Added (Percent of GDP) and Spending (Percent of Public Spending) Compared with Peers, 2017 p.65 Fig 47. Direct Payments to Farms by Economic Size, Kosovo, 2017, Percent p.66 Fig 48. Agriculture Spending by Function, Kosovo, € Million at Current Prices, 2014–19 p.66 Fig 49. Mean TE Scores by F

FAQs

What is the main objective of the Kosovo Country Economic Memorandum?

It focuses on identifying constraints and opportunities to improve Kosovo’s productivity and support a more productive future through policy and structural reforms.

How does the report address firm productivity?

It evaluates firm-level drivers such as access to credit, productivity performance, firm dynamics, and indicators of business environment and market functioning.

Which areas are covered to strengthen growth through competitiveness?

It covers education quality, regulatory barriers to competition, and competitiveness channels including exports and foreign direct investment.

Jul 19, 2026

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