Kosovo increases import from Serbia over 100%, Gerjaliu: This testifies to the effect of private sector destruction

Large imports have placed Kosovo in an unfavourable economic position, with a high trade deficit. This negative trade balance is continuing to hurt the country, when low levels of Kosovo exports are taken into account as a result of lack of subsidies and inadequate policies for local producers, the latter stress.

Import has marked significant growth during the first quarter of 2025, while the value of export goods has decreased during this period compared to the same months last year.

In addition, Serbia's goods have been strongly restored to the Kosovo market this year, following a decline in recent years. Kosovo has exceeded the double import of Serbian-born products in the first quarter of this year compared to the same period in 2025.

According to official Kosovo Customs data, our country from Serbia, for the first five months of this year, has imported goods worth 91m euros, or 49m euros (116 percent) more than in the same period last year, which was 42m euros.

The change in security measure from total restraint to increased control has accelerated the flow of Serbian goods to Kosovo.

Meanwhile, trade relations between Kosovo and Germany are deepening increasingly year-on-year.

Germany, according to Kosovo Customs data, is Kosovo's first partner in terms of imports in January-May, which this year has left Turkey in second place by a small margin.

Kosovo's customs in a response suggested that 12.7m euros have dropped Kosovo's export value during the first five months of this year, compared to the same period last year. Meanwhile, the value of import has increased nearly 380m euros from January to May 2025, compared with the corresponding period of 2024.

Referring to Kosovo Customs data, in January-May 2025, the export value from Kosovo is over 356m euros, until at this point last year was around 369m euros. Until the difference in these numbers exceeds 12m euros.

On the other hand, the value of import in the first five-month of this year is over 2 billion and 760m euros, until January-May 2024, that figure was over 2 billion and 380m euros.

The reasons for the decline in exports and import growth are widely valued by economists.

One side highlights the influence of politics and lack of co-operation with the private sector, while the other attributes these developments to structural weaknesses in the economy, including poor production base, lack of innovation and gaps in the labour market.

The former head of the Kosovo Economic Ode, Safet Gerjaliu, points out that the main reasons for export decline and increased import are closely linked to policy interference in the economy and lack of co-operation with the private sector.

He estimates that the political agenda in Kosovo is suppressing economic development, while the lack of dialogue and public-private partnership is seriously weakening the production sector.

The “is really a bitter reality created in Kosovo, where the political agenda is dominated. A political agenda that is fuelling economic development and the economy in Kosovo is experiencing various forms of failure, given lack of dialogue and public-private partnerships. Starting a pride in power in the face of the private sector... Unfortunately, this chronology or continuation of Kosovo's export decline is being recorded year-on-year, in particular in the last three or four years. The very fact that we now have a drop of minus 12m euros in export and have an enormic increase in import, well testifies to the effect of the private sector's destruction in Kosovo. There's no real dialogue, just trying to paralyze the private sector, no motivation to be more creative, more innovative”, potential Gerjaliu.

On the other hand, Program Director at the Riinvest Institute Visar Vokri says the decline in exports and the high level of trade deficit in Kosovo are mainly linked to deep structural challenges in the country's economy.

He stresses that one of the main reasons is the weak production base, which according to him limits Kosovo's capacity to export competitively.

“Arsyet why we have this high trade deficit, the challenges are of structural character. Starting from the production base in Kosovo. Then I believe that even inadequate investments in innovation, research and development in the private sector, gaps in the labour market and other similar factors have made that we are not yet sufficiently competitive in export markets”, Vokrri says.

Meanwhile, according to Gerjaliu, to stop the negative trend in export, Kosovo needs political stability.

He also stresses the need for improved image of the country through active political and economic diplomacy so that economic sanctions can be lifted, according to him.

Kosovo needs a political stability. In the second row Kosovo must improve the image through an active political and economic diplomacy, to remove or remove economic sanctions. Third row should be more active in promoting investments. We cannot be attractive to foreign investors if we don't do more for the private sector and local producers”, Gerjaliu points out.

Producers in Kosovo have repeatedly called on the country's institutions to create favourable fiscal policies to increase export.

In addition to the import surge, the trade deficit during January-May 2025 has deepened to 2.4 billion euros.

In addition, the top top three states that Kosovo accepted imports in January-May 2025 are Germany at around 384m euros, Turkey with 381m euros, followed by China with over 329m euros. After that, the other three states that bring goods to Kosovo are Albania, Italy and Northern Macedonia.

According to Kosovo Customs statistics sent to Kosova Prees, the first six states which accepted exports from our country during these months are North Macedonia with over 54m euros, then Albania with over 52m euros, followed by Germany and Switzerland. Meanwhile, Montenegro, which in this year's five-month, accepted goods from Kosovo, worth nearly 21m euros.

In 2024, Kosovo marked a historical record for importing goods value.

Over the past year, Kosovo has exported goods worth only 889m euros, while for the first time it has imported 6.38 billion euros within a year.

In 2023 the value of exports was 819m euros, import as well as 5 billion 878m euros.

In 2022 exports were 920m euros, imports 5 billion and 639m euros, in 2021 stood at 755m exports, while imports of 4 billion and 684m euros.

In 2020, the value of exports was 474m euros, while 3 billion and 296m imports. / KP/ Periscope.