Trade deficit grows by 4 %

Economists, former head of the Kosovo Economic Ode, Safet Gerjaliu, and economist Union Mustafa, estimate that without concrete policies for stimulating domestic production and export, the country will continue to deepen dependence on import.

According to Kosovo Statistics Agency data (ASK), the trade deficit in May 2026 increased by 4 per cent compared to the same period last year, reaching 544.4m euros, up from 523.4m euros in May 2025. Exports covered only 14.7 per cent of imports.

The former head of the Kosovo Economic Ode, Safet Gerjaliu, in an interview for Online Economy said the private sector is facing numerous challenges, while according to him, institutional support is lacking and local product promotion.

The private sector is facing numerous challenges. In the first place, there is no institutional support, either directly or indirectly. In the second row, we have a diplomatic vacuum, where, indeed, instead of promoting the values of products and services in Kosovo, they deal with elections and political agendas. And, definitely, the current situation in Kosovo is quite disturbing, which is also aggravated by the fact that Kosovo every day and more is sealing the fate of the sentence to be an imported-dependent state. So this luxury has been created that we can live from import. We do not have a literal treatment to promote local products and services. The fate of economic diplomacy in Kosovo far more has remained in the hands of businesses than in the hands of institutions, and this is truly the biggest hit”, he said.

Gerxhaliu said increasing the price of electricity and problems with supply have directly affected the competitiveness of Kosovo products.

Therefore, it should not surprise us that we are a truly dependent society today, in addition to importing products, we import silent inflation. And when all of this is added to the fact that with the rise in the price of energy and this lack that is taking place in terms of electricity supply, Kosovo products and services have fallen into competition and are not competitive in European markets. It's really the biggest concern. This is said by the diaspora, which in the past has been supplied with many products -- made in Kosovo -- but now, thanks to all that is happening in Kosovo, Kosovo products are not competitive on the European market. They are supplied by Poland, Hungary, Bulgaria, Spain and Portugal, not by Kosovo. Therefore, they should be truly oriented in private sector economic support, support of the production sector, and only then can we have positive trends that can affect improving the balance of payments. When all of this is added to the fact that today we don't have foreign investors or very little investment from the diaspora, I believe it's a moment that should lead us more to political stability, economic diplomacy, and to attracting foreign investors or investments, either from diaspora or from international frogs”, he said.

Speaking of increasing imports, including those from Serbia, he said businesses are driven by economic logic.

“Not only from Serbia, import growth is really available year-on-year. In this direction it should be understood that emotions are secondary in a business, economic rationality and calculations are crucial. The very fact that the same commodity imported from Austria or Germany has the cost of transportation has two thousand and 800 to 3 thousand euros, while the same product from Serbia has only 500 euros, is the first reason. Second, remember that the biggest European frogs are focused and oriented on their representations in Serbia. In this regard, when the production structure is analysed, very few are a hundred percent Serbian products. There are many more European and international interiors that are active in Serbia, and those products, both as finals and as semi-products, which are incorporated in Kosovo products, are imported. Tell someone that we import raw materials for furniture, when the furniture is more developed, or that we import raw materials for packing soft drinks or energy drinks and a lot of other semi-products that are in the final production in Kosovo is a reality of time. However, I believe that in terms of regional partnership we need much more to do in terms of strengthening local production, and not always be the ones who, in the name of patriotism, calculate it to import raw materials and Kosovo business products”, Gerjaliu stressed.

Economist Union Mustafa also links the growth of the trade deficit with the lack of policies supporting local production.

The lack of adequate and adequate policies to stimulate local businesses and support local production has made it easier for merchants and businesses to buy and import products than to produce and expand the production chain. Why is that? Because the operational costs of businesses have increased. Electricity prices have increased, the cost of the workforce has increased, and the price of derivatives has increased in recent months. This makes Kosovo businesses not competitive with foreign ones. They earn more easily and more by importing goods and services than by producing. For export, it almost cannot be spoken of”, Mustafa said.

He added that the future government should take priority in creating fiscal policies that help producers and exporters.

The next government's first “steps, anyone who forms it, should be a literal analysis of the state of businesses and the creation of relevant fiscal policies, which will stimulate production businesses and those that have export potential. These businesses have to rely on and subsidize in different forms, whether by reducing the cost of electricity or by subsidizing the cost of the labor force. Proper policies must be found in order to save even these few production businesses that remain in the country”, Mustafa said.

According to the AKS, the export of goods in May 2026 reached 94.1m euros, while import amounting to 638.6m euros. Compared to the same period in 2025, exports increased by 15.7 percent, while imports marked 5.6 percent growth.

Kosovo's foreign trade in May 2026 was characterised with increased trade deficit, while exports continued to cover only part of imports.

The data from foreign goods trade in Kosovo points to an increase in the trade deficit of 4.0 % in May 2026, in proportion to the same period in 2025, worth 544.4 million Euros, compared to the deficit of 523.4 million euros in 2025. Export covers import with 14.7 %”, Kosovo Statistics Agency announced.

According to the AKS, the export of goods in May 2026 was worth 94.1m euros, while imports of 638.6m euros, which is a 15.7% increase for export, as well as a 5.6% increase for import ʹ compared to the same period in 2025.