The Central Bank of Kosovo (BQK) has projected a 4.2% economic growth for the year 2025, driven mainly by household consumption, investments, and exports of goods and services. However, imports are expected to have a negative impact on overall economic expansion.
In its Quarterly Economic Assessment, BQK emphasized that although growth is solid, inflationary pressures have resurfaced in early 2025.
“The resurgence of inflation in Q1 2025 was primarily driven by rising food prices and anticipated increases in electricity tariffs,” the report stated.
The projected inflation rate for 2025 is estimated at 3.3%, with risks leaning to the upside. Key concerns include the increase in global food prices and the transmission of higher energy costs into domestic production and consumer goods.
BQK warned that while the economic outlook remains positive, Kosovo’s economy remains sensitive to global price fluctuations and domestic energy cost pressures.
