The International Monetary Fund (IMF) announced yesterday that it has reached a staff-level agreement with Kosovo concerning the third review of the Stand-By Arrangement (SBA) and the Resilience and Sustainability Facility (RSF).
According to an official IMF statement, a mission led by David Amaglobeli visited Pristina from October 28 to November 11, 2024, to conduct discussions on the 2024 Article IV Consultations and the third review of Kosovo’s financial arrangements. The IMF emphasized that Kosovo’s economy remains robust, driven by strong private consumption and higher public investments, despite facing challenges such as a widening trade deficit and partially mitigated by remittances from the diaspora.
“We expect growth to reach 4.25% this year and 4% next year. Headline inflation has decreased significantly, standing at 0.4% year-on-year in October 2024, driven by a slowdown in food and transport price increases. The external current account deficit widened to 2.75% of GDP in the first eight months of 2024 from 1.5% of GDP during the same period last year, reflecting increased imports of goods and services due to higher domestic demand. Credit to the private sector has grown in double digits, deepening the financial sector and providing further economic support. The banking sector remains healthy, profitable, and well-capitalized, with low levels of non-performing loans,” the IMF statement detailed.
