Monday, October 22, 2007

Tentative good news about the Kosovar economy

According to an ECIKS report, the extensive economic reforms which began in 1999 are finally showing measurable and sustainable results.  Here are some highlights:

  • Kosovo’s GDP is estimated to have grown by about 3% in 2006
  • After a fall in 2005, Kosovo’s exports grew remarkably in 2006 by 54%, with a modest growth of imports by 5%.
  • the rate of non-housing private investment grew impressively by 61% and lending to the private sector also increased.
  • The rate of inflation stood near zero, in spite of accelerating economic activity.
  • Government spending was kept within the prescribed and sustainable levels, in line with a Letter of Intent, which the Government of Kosovo signed with the International Monetary Fund (IMF) in 2005

This is pretty good news, though largely invisible to the average Fatmir on the street.  In fact, most would dispute the inflation statistic as the price of food is sky-rocketing.  Prices of essentials like oil, flour and milk have increased by 70-80 percent!

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