Kosovo with high trade deficit, experts seek support for local producers

Economist Lulzim Beqiri for Online Economy says the high level of imports conflicts with statements of strong economic growth and shows lack of support for local producers.

And now if we're based on the declarations of institutions in the Republic of Kosovo that have tremendous economic growth or economic growth, this exposes the very fact that we import most of the products. For example, about 1 billion euros, I already mentioned it a little earlier, and this certainly has a very negative message regarding the support of local producers. Most of the products, even in those areas that Kosovo can produce -- for example, in terms of milk, meats, other products -- are imported, and this certainly carries a bad message”, he said.

According to Beqiri, promised investments for local producers have not been realised and concrete decisions are lacking that would help local businesses cope with the competitiveness of imports.

The “would also need to make the investment promoted during election campaigns realised because over 1 billion euros were promised to local producers, and that happened. More are political statements or campaigns because we are already going straight to the elections, but there is no concrete decision that helps the manufacturer. The local producer, as you have seen milk producers, owes milk to them, that sʹkrans where they divide it, while import is especially remarkable from countries like Slovenia, the Balkan countries they are. Therefore, I consider that there would have to be concrete policies, not beautiful statistics because Kosovo citizens are tired of beautiful statistics and that doesn't even increase economic development, nor lower import, but certainly more is about consumption because of elections that will occur in Kosovo“, he said.

Meanwhile, economist Union Mustafa for Online Economy estimates that the trade deficit has steadily increased in recent years, damaging the productive economy and opportunities for creating new jobs.

We've got a trade deficit growth trend in recent years and unfortunately at the expense of the local economy, that is, the productive economy, which generates new jobs. There have been years now that the government in office currently, 6-7 years on point, does not view local businesses and the country's economic development as partnership, but you see them as enemies of the country, and this is happening as a result of the government's unwillingness, especially the prime minister of the Republic of Kosovo, with the proper, adequate policies implemented, which stimulate local production and also stimulate export. But this is not happening as a result of a medieval opinion -- a mind which businesses don't see as partners, but views as enemies of the country“, he said.

Asked what would be the main measures for lowering the trade deficit, Mustafa stressed the need for fiscal reforms and more supportive policies for production businesses.

The first “, changing fiscal policies. For years no change in fiscal policies has been made. So to change fiscal policies, create favourable policies to stimulate local businesses that are productive and tend to export. Unfortunately, it hasn't been said that in a decade, there has been no change in fiscal policy. To create new opportunities to subsidize exports, producers aimed at exports. To create favourable policies on supporting local businesses. The most harmful decision in the world is in milk products. As much as the dairy products companies have stabilised, with a decision issued by the incumbent agriculture minister, that is, decided, decided before the act committed, and is said to all go to the closure of businesses. That is, no particular sector has been stimulated by this government to grow local production, increase exports and increase new jobs“, he said.

Mustafa estimated that even institutional blockades and lack of co-operation between institutions and businesses are negatively affecting economic development and competitiveness of local producers.

And all these factors are which directly or indirectly affect the production economy. Unfortunately, the trends of this government, like collaborating, like not co-operating, that is, never had, shown at least no willingness to support local production. But it has always been using a local anti-production framework, despite having come to power with the cause of protecting local products. These have undermined the co-operation of local producers as well as the few co-operations that have been with international markets by raising the cost of production, as a result of the rise of the price of electricity, the cost of products, last month's derivatives that have not been made any stimuli, and costs have been raised and local companies cannot be competitive in relation to foreign companies<1>, Mustafa said.

In March 2026, Kosovo's trade continued to point towards import, creating a deficit of 563.5m euros.

Exports remained low and driven by metals, while imports were dominated by mineral products, machinery, and food. EU and CEFTA member states remain the focus of Kosovo's trade exchanges.