ABB raises alarm: Kosovo emptys, emerging economy, high unemployment

The Kosovo Alliance of Business has expressed deep concern for the current economic situation in the country, referring to the World Bank's latest report.

The Kosovo Alliance of Business has estimated that the latest World Bank report reflects a disturbing state of Kosovo's economy, which, according to them, is not marking sustainable development but is functioning at the survival level.

According to the GDP, economic growth projected at 3.7%3.9% remains insufficient to generate new jobs, raise wages and stop migration trends.

The 3.7%.9% rate is insufficient to create jobs, raise wages, and halt migration. The problem is not the lack of labor force, but the lack of serious economic policies. Mass migration and the exclusion of women from the labour market are weakening the economy daily”.

The organization points out that the main problem is, not the lack of labor force, but the lack of serious and long - term economic policies.

Kosovo faces a dangerous paradox: high unemployment and simultaneously lack of workers, as a result of an education system cut off from the labour market and non-competitive working conditions,” is said to be in the GDP response.

According to its estimates, mass migration and the exclusion of women from the labour market are constantly weakening the economy, while the current economic structure remains largely dependent on consumption and remittances, making it fragile and without strong productive grounds.

The GDP requires urgent institutional intervention, with the focus on production and export, reforms in the education system and the labour market, as well as concrete measures for halting migration and increasing support for businesses and salaries.

“Without deep reforms, Kosovo will continue to lose people, competitiveness and economic perspective”.

The World Bank's latest report on the Western Balkans released during yesterday gives a clear alert to Kosovo and the region. Economics are growing, but much slower than citizens need and much below the real potential that exists.

Economic growth of 3.7% in 2026 and 3.9% in 2027 is forecast for Kosovo. At first glance, these figures may seem positive, but in reality they are not enough to transform the economy, open up new jobs, increase wages, or curb youth migration.

The report says growth throughout the Western Balkans is slowing down due to global uncertainty, conflict in the Middle East, continued inflation and weakening external demand.

One of the most critical points of the report is the job market.

The World Bank acknowledges that Kosovo and the region have a lack of workforce, while the paradox is that at the same time many people are unemployed or have given up their job search. This shows that the problem is not the lack of people, but the lack of quality jobs and noncompliance among the skills the educational system offers and market needs. In Kosovo, thousands of young people graduate every year, but many do not find jobs in their profession or leave the country once they are given the opportunity.

The World Bank requires structural reforms, but this in simple language means that Kosovo must radically change the way the economy works.

The World Bank recommends that Kosovo focus policies on job creation, improving working conditions, and facilitating participation of women and youth in the economy, through better social services and professional training.