Economic StabilityThe real development of the economy, measured by the gross domestic product (GDP), has been favorable the past years, showing a positive and continuously increasing trend, despite the effects of the international financial crisis.
The private sector consumption and investments are the most important factors behind economic growth. These investments are mainly being driven by the quickly expanding financial sector. Moreover, Kosovos Government runs a stable and forward-looking fiscal policy. The tax revenue base has been widened, thus enabling Government expenditures to increase and, in turn, support economic growth.
Kosovo runs a very stable monetary policy. Kosovo is one of the few counties outside the EU-zone that has introduced the Euro as its official currency. By eliminating the exchange rate risk, transaction costs have been reduced, facilitating the promotion of trade and investment. Due to the absence of monetary instruments resulting from the use of the Euro, Kosovo does not run any monetary policy risk either. Prices are expected to remain stable in the future.