The International Monetary Fund (IMF) forecasts 3.9% economic growth for Kosovo in 2025. While this represents the highest growth rate in the region, it is slightly lower than last year, reflecting a 0.7 percentage point decrease compared to 2024. The IMF also predicts slower inflation in basic goods for the coming year.
According to the IMF’s Global Outlook report, Kosovo’s GDP growth is expected to reach 3.9% this year and 4.0% in 2026. In contrast, neighboring countries are projected to experience lower or stagnant growth:
- Albania and Bosnia-Herzegovina: 0.6 percentage point decline
- Montenegro: same as last year
- Serbia: 0.5 percentage point decrease
- North Macedonia: growth rises from 2.8% in 2024 to 3.4% in 2025
Regarding inflation, Kosovo is expected to see a 3.5% increase in consumer prices in 2025, compared to 1.6% in 2024, with a slowdown to 2.7% in 2026. Among regional peers, Serbia faces the highest inflation rate at 9%.
Globally, the IMF forecasts 3.2% economic growth in 2025 and 3.1% in 2026, with emerging and developing Asian markets expected to grow faster than European economies. The Eurozone is projected to expand by 1.2% in 2025 and 1.1% in 2026, up slightly from 0.9% in 2024.
