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Republic of Kosovo
Request for Stand-By Arrangement and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
International Monetary , International Monetary Fund. European Dept.
After a strong recovery from the pandemic, higher international commodity prices moderated GDP growth in 2022, which posted 3.5 percent, while inflation exceeded 11 percent. Lower commodity prices in 2023 will provide much-needed relief to households and firms. This, together with supportive fiscal policy, especially higher public investment absorption, will underpin higher growth of about 4 percent, and lower inflation, which should slow to 5–6 percent. Risks continue to be mainly on the downside: higher commodity prices would lead to lower growth and higher inflation, and tighter financial conditions would weigh on bank asset quality and liquidity.
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