Press Release No. 23/286

IMF Staff Concludes Visit to Kosovo

August 9, 2023

Pristina, Kosovo: An International Monetary Fund (IMF) team led by Mr. Gabriel Di Bella, conducted a staff visit to Pristina from July 31 to August 4, 2023, to discuss recent macroeconomic and other developments, including progress in the implementation of the precautionary Stand-By Arrangement (SBA) and the Resilience and Sustainability Facility (RSF).

At the conclusion of the visit, Mr. Di Bella issued the following statement:

“Amid a challenging global context, macroeconomic conditions in Kosovo have remained favorable so far in 2023. Growth remains resilient, inflation continues to decline, and the current account deficit has started to narrow. Fiscal revenues continue to grow at a healthy pace, the implementation of public investment program has picked up, and fiscal buffers have remained at appropriate levels. However elevated global volatility and tensions in northern Kosovo remain risks to the outlook that if materialized could add to policy challenges”.

“In particular, recent developments in four northern municipalities led to temporary and reversible measures by some traditional donors and partners that restrict new economic and financial collaboration. While these measures are not expected to impact the outlook if reversed in the short term, they could become an obstacle to foreign direct investment and economic development more generally if sustained for longer.”

“During the visit, the IMF team discussed recent macroeconomic and policy developments and progress on the 2024 draft budget. The team also took stock of the good progress made toward meeting key commitments under the Fund-supported programs. Actions under the SBA and the RSF will be formally assessed during the first review mission expected to take place in October.”

“The IMF team held meetings with President Osmani, Prime Minister Kurti, Deputy Prime Minister Bislimi, Acting CBK Governor Nurboja, Minister of Finance, Labor and Transfers Murati, Minister of Economy Rizvanoli, and other senior government officials. The team also met with key stakeholders in the energy sector, representatives from the private sector, representatives from the international community, and development partners.”

“We would like to thank the authorities for candid discussions and their warm hospitality. We look forward to continuing our engagement in support of Kosovo and its people.”