World Bank: Kosovo economy expected to shrink for 8.8 per cent this year

According to the newest economic report in the Europe and Central Asia region, published today by the World Bank, Kosovo's economy is expected to shrink by 8.8 per cent in 2020.

The BB report reportedly has caused a decline in service exports and reduced investments and consumption.

The government has responded quickly, providing support to firms and workers, yet employment is expected to decrease as poverty increases. Increased remittances are expected to ease the impact of economic contraction. The recovery is expected to be slower than anticipated earlier, since the pandemic is lasting longer than expected, thus preventing economic growth in 2021”, the report says.

It further stresses how an economy largely based on services, Kosovo was especially sensitive to COVID-19.

Also in the report, it is said to ease the impact of recession, the government must continue to invest in effective health management caused by pandemic.

According to the WB, increased health and education spending is important for a stronger economic recovery after pandemic in the new economies of Europe and Central Asia.