Hoti conveys IMF remarks: Economic growth decline, rising inflation, risks for fiscal stability

LDK MP Avdullah Hoti has forwarded the assessments of the International Monetary Fund mission after a two-week visit to Kosovo.

The mission concluded on February 13th 2026 consultations according to Article IV, which oversees the economic policies of member states.

According to Hoti, the IMF statement reveals serious risks to the country's economic and fiscal stability.

Economic growth has dropped to 3.25 percent in the third quarter of 2025, down from 4.75 percent a year earlier.

The loss of consumption and private investment relates to slow credit and lower real income.

Inflation reached 5.25 percent in December 2025, up from 1.1 percent in the same period in the preceding year.

The current account deficit expanded to 9.6 percent of GDP, due to increased imports, especially energy.

Hoti emphasises that the IMF recommends linking public wages to inflation and determining minimum wage according to productivity.

Bank loans, which have reached 60 percent of GDP, require more careful supervision, especially in the real estate sector.

Similarly, the strongest adjustment of microfinancial institutions is required to protect financial integrity.

Hoti argues that these remarks coincide with his earlier criticism of fiscal policies and lack of public investments.

According to him, IMF warnings should serve as a signal for review of the economic course.